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
Q48: An annuity can best be described as
A)
Q49: You are trying to prepare a budget
Q50: The ratio of interest to principal repayment
Q51: You would like to have $1,000 one
Q52: A young couple buys their dream house.After
Q54: After graduating from college with a finance
Q55: An investor puts $200 in a money
Q56: A bank account has a rate of
Q57: Which is NOT correct regarding an ordinary
Q58: Which of the following should have the
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