A perpetuity of $4,500 per year beginning today is said to offer a 13% interest rate. What is its present value?

The period that is measured to determine if a contract can be performed within a year ends when

a. Performance begins b. Performance is actually completed c. Performance would probably be completed d. Performance could conceivably be completed.

Regarding the consideration clause, which of the following statements is INCORRECT?

A) The insurer's consideration is its promise to pay benefits. B) The consideration given by the insured is the promise to pay the premiums. C) Consideration is a necessary element of a legal contract. D) The consideration given by the insured are the statements made in the application.