Question

Maybepay Life Insurance Co. is selling a perpetual contract that pays $4,990/year. The contract currently sells for $143,012. What is the rate of return on this investment

Answer 1

3.49%

Step-by-step explanation:

Calculation to determine the rate of return on this investment

Using this formula

Rate of return=Monthly payment/Current value*100

Let plug in the formula

Rate of return = $4,990/$143,012 *100

Rate of return= 3.49%

Therefore the the rate of return on this investment is 3.49%