Answered

Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Explore our Q&A platform to find in-depth answers from a wide range of experts in different fields. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Maybepay Life Insurance Co. is selling a perpetual contract that pays $3,894/year. The contract currently sells for $141,042. What is the rate of return on this investment? Enter answer as 4 decimals (e.g. 0.1234).

Sagot :

Tundexi

Answer:

2.76%

Explanation:

Let x be the yearly return

Sales price = $3,894 / x

$141,042 = $3,894 / x

x = $3,894 / $141,042

x = 0.0276088

x = 2.76%

So, the rate of return on this investment is 2.76%.

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.