Investment Option With Insurance Company
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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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