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

The Stay Healthy Insurance Co

.

is trying to sell you an investment policy that will pay you and your heirs $

30, 000

per year forever. Suppose the required return is

6 %,

at what price would this be a fair deal?

300000

500000

566000

600000

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