What is the monthly return on this investment vehicle

Assignment Help Finance Basics
Reference no: EM131604928

Question: Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,500 monthly. The contract currently sells for $115,000. What is the monthly return on this investment vehicle? What is the APR? What is the effective annual return?

Reference no: EM131604928

Questions Cloud

Discuss about the limits of the truth : What do you do with what you know? Is it sufficient to answer what you re asked or to reveal everything that you know about a particular situation?
What is a constant growth stock : Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acquisition of Temp Force Company.
What were the origins of the asian currency crisis : How did the appreciation of the U.S. dollar and depreciation of the yuan affect the timing and magnitude of the Asian currency crisis?
What is the resulting configuration of share ownership : R.K. Maroon (RKM) is a seed-stage, Web-oriented entertainment company with important intellectual property. RKM's founders, all technology experts.
What is the monthly return on this investment vehicle : Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,500 monthly. The contract currently sells for $115,000.
Identify important or significant changes in families : Identify important or significant changes in families since 1960. What factors are responsible for change? What proposals do you have to strengthen the family?
Calculate the firm current ratio and acid-test ratio : Question - A firm's balance sheet has the following data: Cash on hand $450,000. The firm's current ratio and acid-test ratio are closest to what values
Analyze the opportunities for strategic change : Analyze the opportunities for strategic change that are evident, citing evidence.
Describe your greatest communication challenge in workplace : Describe your greatest communication challenge in the workplace and suggest strategies you would use to address this issue.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd