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Curlys Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25,000 per year forev
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Answer #1

The question is solved by calculating the present value of the perpetuity.

Present value of the perpetuity payment each year= annual payment/discount rate

                                                                                                 = $25,000/ 0.06

                                                                                                 = $416,666.67.

In case of any query, kindly comment on the solution.

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