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U Question 42 1 pts You purchase a life insurance policy which involves making five annual premium payments (the first payment starting today). The original

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U Question 42 1 pts You purchase a life insurance policy which involves making five annual premium payments (the first payment starting today). The original premium is $1800, and the premium increase is 4% each year. The timeline for the payments is drawn for you. Today Year 1 Year 2 Year 3 Year 4 $1,800 $1872 $1947 $2025 $2106 Now assume the insurance company offers you a level payment plan that has the same present value as the payment stream above but where all the premiums are the same. If the insurance company earns 10% compounded annually on its assets, what would the level payments be? Today Year 1 Year 2 Year 3 Year 4 $X $X $X $X $X $ $1.723 O $1.935 O $1.788 O $1.989

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