The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay
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Question:
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever.
Suppose a sales associate told you the policy costs $475,000. At what interest rate would this be a fair deal?
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date: