Question
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $37,000 per year forever.
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $37,000 per year forever. Suppose a sales associate told you the policy costs $482,000. At what interest rate would this be a fair deal?
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Options Futures And Other Derivatives
Authors: John C. Hull
4th Edition
0130224448, 9780130224446
