Question
W has a policy that pays $500 each month starting in exactly one month. These $500 receipts will remain constant until the last receipt in
W has a policy that pays $500 each month starting in exactly one month. These $500 receipts will remain constant until the last receipt in exactly 10 years. Thereafter, receipts will grow at 0.25% each month. W will get her last receipt in exactly 25 years. What is the value of her policy if the rate at which the policy is valued is an EAR of 7% p.a.?
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Cost Benefit Analysis
Authors: Harry F. Campbell, Richard P.C. Brown
3rd Edition
1032320753, 9781032320755
