Problem:
You just paid $350,000 for a policy that will pay you and your heirs $12,200 a year forever.
Required:
Question: What rate of return are you earning on this policy?
- 3.26 percent
- 3.49 percent
- 3.75 percent
- 1.93 percent
- 3.37 percent
Note: Please show how to work it out.