Question: please help with this!! i need a and b thank you The Perpetual Life Insurance Company is trying to sell you an investment policy that
The Perpetual Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $18,000 per year forever. a. If the required return on this investment is 5.8 percent, how much will you pay for the policy? (Round your answer to 2 decimal places, e.g., 32.16.) b. Suppose the Perpetual Life Insurance Company told you the policy costs $440,000. At what discount rate would this be a fair deal? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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