What is the monthly return on this investment vehicle

Assignment Help Financial Management

Reference no: EM131460859

Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $2,600 monthly. The contract currently sells for $330,000.

Requirement 1:

What is the monthly return on this investment vehicle? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Requirement 2:

What is the APR? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Requirement 3:

What is the effective annual return? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Reference no: EM131460859

Questions Cloud

Comment on difference between the two estimated probabilties : American workers are increasingly planning to delay retirement (US News & World Report, June 30, 2010). According to a Pew Research Center comprehensive survey.

Discuss about the person-environment fit : Person-environment fit (P-E fit) refers to the similarity or congruence between a person's values or personality and his or her work environment.

Find out the financing choice for each type of investor : Find out the financing choice for each type of investor and corresponding after-tax return on equity. Which type of investor has the highest after-tax return?

What is probability of production machines will be adjusted : Acceptance sampling is an important quality control technique, where a batch of data is tested to determine if the proportion of units having a particular.

What is the monthly return on this investment vehicle : What is the monthly return on this investment vehicle? What is the effective annual return?

Mutual funds that mimic the returns of the index : The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. you can purchase mutual funds that mimic the returns of the index

Compute the probability of obtaining a sample mean : The significant decline of savings in the United States from the 1970s and 1980s to the 1990s and 2000s has been widely discussed by economists.

Why is customer integration so important : When working with a business why is customer integration and customer satisfaction so important? Give examples on how they are important.

Compute the expected number of high school graduates : According to a report, college graduates in 2010 were likely to face better job prospects than 2009 graduates (The New York Times, May 24, 2010).

User Account

All Pages