Annual rate of return on policy-eternal gift insurance

Assignment Help Finance Basics
Reference no: EM132747302

The Eternal Gift Insurance Company is offering you a policy that will pay you and your heirs $30,000 per year forever at the end of each year. The $30,000 payment will grow forever by 1% per year. The cost of the policy is $378,900. What is the annual rate of return on this policy?

Reference no: EM132747302

Questions Cloud

What type of refreshments should the owner sell : What type of refreshments should the owner sell? Make a decision tree and state your decision.
Which is a static change in an organization : Which of the following is a static change in an organization? Pivoting the company to focus on a new market. / Getting rid of a production facility
Compute the incremental cost : If the alternative set-up was adopted, direct costs could have been $850,000. In addition, Mozart fixed costs were $100,000. Compute the incremental cost
Parts of program for information and security awareness : Identify the parts of a program for information and security awareness and use the security goals of the organization to develop a personnel training
Annual rate of return on policy-eternal gift insurance : The Eternal Gift Insurance Company is offering you a policy that will pay you and your heirs $30,000 per year forever at the end of each year.
Which is not true of organizational development : What does HR organizational development not do? Which of the following is not true of organizational development and change?
Visualization literacy : We have spent the past weeks working on the individual visualization layers and last week we learned how the layers all fit together.
What are the main objectives of financial system : What are the main objectives of financial system? Elaborate the Structure of the Australian Financial System? How to Forecast Financial Statements
Find the impact on the price of the bond : What has been the impact on the price of the bond (in percentage terms)? Please show all of your work.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd