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Grandma tells you that a nice man stopped by and told her that the estimated price to bury her 20 years from now is $12,000

Grandma tells you that a nice man stopped by and told her that the estimated price to bury her 20 years from now is $12,000 for a basic burial. The nice man offered to sell her a burial insurance policy that guaranteed to pay all expenses up to $12,000 for only $4,500, which is less than the average price of a basic burial today. Is this a good deal if i = 6%, ceteris paribus? Assume Grandma is likely to live 20 more years but if she does not, she does not want her grandkids to have to pay to bury her.

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