Solved

Western States Life Insurance Offers a Perpetuity That Pays Annual

Question 67

Multiple Choice

Western States Life Insurance offers a perpetuity that pays annual payments of $10,000. This contract sells for $275,000 today. What is the interest rate?


A) 3.64 percent
B) 3.87 percent
C) 4.10 percent
D) 4.21 percent
E) 4.39 percent

Correct Answer:

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