question archive Erica is a beneficiary of a life insurance benefit that provides a payout of 100 today and increases by 100 each year thereafter
Erica is a beneficiary of a life insurance benefit that provides a payout of 100 today and increases by 100 each year thereafter
Subject:FinancePrice: Bought3
Erica is a beneficiary of a life insurance benefit that provides a payout of 100 today and increases by 100 each year thereafter. The payments are assumed to last forever. Erica calculates the modified duration of her payout as X using an annual effective rate of 4%.
Calculate X.
