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A life insurance company is selling an investment policy that will pay you and your heirs $17,500 per year forever, with the first payment starting
A life insurance company is selling an investment policy that will pay you and your heirs $17,500 per year forever, with the first payment starting today. If you require a return on this kind of investment of 6 percent and they sell this policy for $295,000
- Is this a good investment for you? Show your work.
- At what rate would you breakeven on this investment, if the first payment is at the end of this year?
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