Forever Insurance Company has offered to pay you or your heirs $100 per year at the end of each year forever.If the correct discount rate for such a cash flow is 13%,what the amount that you would be willing to pay Forever Insurance for this set of cash flows?
A) $1,000.00
B) $869.23
C) $769.23
D) $100
Correct Answer:
Verified
Q52: Uncle Fester puts $50,000 into a bank
Q53: A young couple buys their dream house.After
Q54: By increasing the number of compounding periods
Q55: An investor puts $200 in a money
Q56: What is the present value of $25
Q58: If you hold the annual percentage rate
Q59: After graduating from college with a finance
Q60: Consider the following set of cashflows to
Q61: Suppose you made a $10,000 investment ten
Q62: A bank is offering a new savings
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents