Live forever life insurance co is selling a perpetuity


Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,350 monthly. The contract currently sells for $112,000.

What is the monthly return on this investment vehicle? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Monthly return % per month

What is the APR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

 APR %

What is the effective annual return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

 Effective annual return %

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Financial Management: Live forever life insurance co is selling a perpetuity
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