The Maybe Pay Life Insurance Co$.$ is trying to sell you an investment policy that will pay you and your heirs $$4,000$ per year forever. If you require a return on this investment of $7\%,$ how much will you pay for the policy?

Hint: this is a perpetuity problem $($key word "forever"$).$ Use the perpetuity formula PV $=$ CF$/$r$.$ Refer to pages $58$ and $59$ of the CH$08$b class notes if needed.