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How much life insurance would a person buy if he wants to leave enough money to ensure that their family will receive $50,000 dollars in
How much life insurance would a person buy if he wants to leave enough money to ensure that their family will receive $50,000 dollars in interest, of constant year 0 value dollars? The interest rate expected from banks is 10 percent and the inflation rate is expected to be 4 percent per year.
Choices are:
500,000
1,250,000
$833,333
$866,667
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