What is the monthly return on this investment vehicle

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Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,250 monthly. The contract currently sells for $110,000.

What is the monthly return on this investment vehicle? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Monthly return % per month What is the APR? (Do not round intermediate calculations.

Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) APR % What is the effective annual return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual return.

Reference no: EM131022906

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