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a. Capital Asset Management Limited is selling you an investment product that will pay you and your heirs $25,000 per year forever. Assume that the

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a. Capital Asset Management Limited is selling you an investment product that will pay you and your heirs $25,000 per year forever. Assume that the required rate of return on this investment is 9%, how much will you pay for this investment product? Show all your calculations. 3 marks b. Ruth has paid $900,000 to purchase an investment product that will pay her and her heirs $30,000 a year forever. Calculate the rate of return that investment product is offering to Ruth. Show all your calculation. 3 marks b. Ruth has paid $900,000 to purchase an investment product that will pay her and her heirs $30,000 a year forever. Calculate the rate of return that investment product is offering to Ruth. Show all your calculation

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