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The AAA Insurance Co . is trying to sell you an investment policy that will pay you and your heirs $ 3 0 , 0

The AAA Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever.
a. If the required return on this investment is 5.6 percent, how much will you pay for the policy?
b. suppose a sales associate told you the policy costs $525,000. At what interest rate would this be a fair deal?

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