Final answer:
The statement provided does not contain enough information to determine its truthfulness. It requires a discount rate to calculate the present value of the perpetual annuity, which was not provided.
Step-by-step explanation:
The question is asking whether a certain statement about a perpetual annuity contract is true or false.
However, the provided information does not contain a complete statement, just data about an annuity contract.
A perpetual annuity is a type of investment that provides regular payments indefinitely.
To determine if such a contract offered by Live Forever Insurance Company is correctly priced, we need to calculate the present value of the annuity based on a discount rate (which is not provided in the question).
The formula for the present value of a perpetual annuity is PV = PMT / r, where PV is the present value, PMT is the payment amount, and r is the discount rate per period.
Without the discount rate, we cannot assess the truth of the statement concerning the given selling price being appropriate.