Question
Larrys Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $31,000 per year forever. Assume the
| Larrys Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $31,000 per year forever. Assume the required return on this investment is 7.3 percent. |
| How much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Policy Value Today? |
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Technology And Finance Challenges For Financial Markets Business Strategies And Policy Makers
Authors: Morten Balling, Frank Lierman, Andy Mullineux
1st Edition
041529827X, 978-0415298278
