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3. The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $15,000 per year forever.

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3. The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $15,000 per year forever. If the required return on this Investment is 4.5 percent, how much will you pay for the policy? Suppose the company told you the policy costs $450,000. St what interest rate would this be a fair deal? w Sec 1 Pages: 8 of 11 Words: 1598 of 1985 LS El O OAO PXOG8 2018 TSI

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