Calculating perpetuity values The perpetual life insurance co$.$ is trying to sell you an investment policy that will pay you and your heirs $$20,000$ per year forever. If the required return on this investment is $3\mathrm{.}4\%,$ how much will you pay for the policy? Suppose the perpetual life insurance co told you the policy costs $$475,000.$ At what discount rate would this be a fair deal?