Calculating Perpetuity Values [LO1] The Maybe Pay Life Insurance Co. is trying to sell you...
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Calculating Perpetuity Values [LO1] The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $35,000 per year forever. If the required return on this investment is 4.7 percent, how much will you pay for the policy?
Calculating Perpetuity Values [LO1] In the previous problem, suppose a sales associate told you the policy costs $800,000. At what interest rate would this be a fair deal?
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