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Need ASAP The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $17,000 per year
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The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $17,000 per year forever. a. If the required return on this investment is 5.6 percent, how much will you pay for the policy? (Round your answer to 2 decimal places, e.g., 32.16.) b. Suppose the Perpetual Life Insurance Co. told you the policy costs $400,000. At what discount rate would this be a fair deal? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Present value b. Interest rateStep by Step Solution
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