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Investment Option With Insurance Company

Question

Eternity Insurance set up a trust for you that pays you or your heirs $100 per year at the end of each year forever. If the discount rate for this cash flow is 13%, what is the amount that you would be willing to pay Eternity Insurance for this investment?

 

A. $1,000.00

B. 869.23

C. 769.23

D. 100.00

 

Summary

The question belongs to Finance and it discusses about an investment with an insurance policy and the amount to be paid for a plan that pays a certain amount forever.

Total Word Count 51

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Comments

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    Giuseppe

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