Live Forever Life Insurance Company is selling a perpetuity contract that pays $1,750 monthly. The contract currently sells for $275,000. a. What is the monthly return on this investment vehicle? b. What is the APR? c. What is the effective annual return? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places.
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- Live Forever Life Insurance Company is selling a perpetuity contract that pays $1,550 monthly. The contract currently sells for $116,000. a. What is the monthly return on this investment vehicle? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the APR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the effective annual return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Monthly return b. APR c. EAR % % %Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $3,500 monthly. The contract currently sells for $338,000. a. What is the monthly return on this investment vehicle? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the APR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the effective annual return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Monthly return b. Annual percentage rate % % C. Effective annual return %use excel to answer You have two options for paying your home insurance: 1) Pay $11,000 annually at the beginning of the year; or 2) Pay $1,000 monthly at the beginning of each month. calculate the effective annual interest rate for the recurring payments, and then highlight it in yellow. Repeat the calculations using the incremental rate of return analysis, find AAIIR, then calculate the effective annual interest rate and highlight it in yellow. Assume MARR = 8%.
- Imagine you borrow $490 from your roommate, agreeing to pay her back $490 plus 7 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.49 percent. What is the total dollar amount you will have to pay her back in year? What percentage of the interest payment is the result of the real rate of interest? (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 17.54 or 17.54%.)A loan is offered with monthly payments and a 9.75 percent APR. What's the loan's effective annual rate (EAR) ? Note: Do not round intermediate calculations and round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $3300 monthly. The contract currently sells for $336,000. a. What is the monthly retun on this investment vehicle? b. What is the APR? c. What is teh effective annual return?
- An insurance company is selling a perpetual annuity contract that pays $2,000 monthly. The contract sells for $138,000. What is the monthly return on this investment vehicle? Answer in typingA loan is offered with monthly payments and a 14.50 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) EAR =___.__%Friendly's Quick Loans, Incorporated, offers you $7.50 today but you must repay $9.85 when you get your paycheck in one week (or else). What is the effective annual return Friendly's earns on this lending business? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. If you were brave enough to ask, what APR would Friendly's say you were paying? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
- NikulYou are to make monthly deposits of $825 into a retirement account that pays an APR of9.7 percent compounded monthly.If your first deposit will be made one month from now, how large will your retirementaccount be in 32 years? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)An insurance company has a simplified method for determining the annual premium for a term life insurance policy. A flat annual fee of $150 is charged for all policies plus $2.50 for each thousand dollars of the amount of the policy.For example, a $20,000 policy would cost $150 for the fixed fee plus $50, which corresponds to the face value of the policy. If p equals the annual premium in dollars and x equals the face value of the policy (stated in thousands of dollars), determine the function which can be used to compute annual premiums.