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Larry's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $43,000 per year forever. Assume the

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Larry's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $43,000 per year forever. Assume the required return on this investment is 6.8 percent. How much will you pay for the policy? PV = C/r PV = $43,000/.068 PV = $632,352.94

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