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.An insurance company is offering a new policy to its customers. The details of the policy are as follows: The purchaser makes the following five
.An insurance company is offering a new policy to its customers. The details of the policy are as follows: The purchaser makes the following five payments to the insurance company. After year six no more payments are made. When you reaches 60, the insurance campany will pay $200,000. If the relevant interest payment is 10 % for the first six years and 8 % for all subsequent years. Do you invest in this policy? Why?
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