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You plan to buy an insurance policy. The policy pays you $250,000 when you die and you expect to live for 30 more years. the
You plan to buy an insurance policy. The policy pays you $250,000 when you die and you expect to live for 30 more years. the policy requires you to make annual payments (called premiums) of $3,000 per year.
A.)If the interest rate is 6 percent, and payments are made at the end of each year, should you buy this policy?
B.) redo part a but assume the premium payment are made at the beginning of each year.
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