Problem:
Eternity Insurance set up a trust for you that pays you or your heirs $100 per year at the end of each year forever. If the discount rate for this cash flow is 13%, what is the amount that you would be willing to pay Eternity Insurance for this investment?
A. $1,000.00
B. 869.23
C. 769.23
D. 100.00
Additional Information:
This question is basically belongs to Finance as well as it explains about an investment with insurance policy as well as the amount to be paid for a plan that pays the certain amount forever.