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Sunlife Investment is trying to sell you a 6-year investment policy. If you decide to invest in this policy, you will need to pay $4,000
Sunlife Investment is trying to sell you a 6-year investment policy. If you decide to invest in this policy, you will need to pay $4,000 immediately, $6,000 at the end of year 2 and $8,000 at the end of year 4. The investment policy will then pay you $20,000 at the end of year 6. The interest rate that you require from such investment is 4.8 percent a year, compounded annually. Will you invest in this policy?
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