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How much life insurance would a person buy if he wants to leave enough money to ensure that his family will receive $100,000 per year
How much life insurance would a person buy if he wants to leave enough money to ensure that his family will receive $100,000 per year in interest, of constant Year 0 value dollars? The interest rate expected from banks is 11 percent and the inflation rate is expected to be 4 percent per year.
a. $909,091
b. $1,428,571
c. $1,485,714
d. $2,500,000
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