Perpetuity Clarissa wants to fund a growing perpetuity that will pay $5000 per year to a local museum, starting next year. She wants the annual amount paid to the museum to grow by 5% per year Given that the interest rate is 8%, how much does she need to fund this perpetuity? 7. The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $20,000 per year forever. If the required return on this investment is 8%, how much will you pay for the policy? 8