Question
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $28,000 per year forever.
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $28,000 per year forever. If the required return on this investment is 5.80 percent, how much will you pay for the policy? (Round your answer to 2 decimal places. (e.g., 32.16))
| Present value | $ |
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
9th Edition
0321598903, 978-0321598905
