Question: why 0.06 dont need to plus 1? Question 10 Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you

why 0.06 dont need to plus 1?

Question 10 Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heir $25000 per year forever. If the required return on this investment is 6% per year, how much will you pay for the policy? I PV = Cir PV = $25,000/.06 PV = $416,666.67

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