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The Maybe Pay Life insurance Company is trying to sell you an investment policy that will pay you and your heirs $31,000 per year forever.

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The Maybe Pay Life insurance Company is trying to sell you an investment policy that will pay you and your heirs $31,000 per year forever. Assume the required return on this investment is 7.3 percent. How much will you pay for the policy? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16 . The Maybe Pay Life insurance Company is trying to sell you an investment policy that will pay you and your heirs $40,000 per year: forever. A soles associate for the company told you the policy costs $650,000. At what interest rate would this be a fair deal? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.9., 32.16

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