An insurance company is trying to sell you an investment policy that will pay you and your heirs $50,000 per year forever. If the required return on this investment is 5.4 percent, how much will you pay for the policy?
A.$1,265,455.25
B.$1,627,950.42
C.$872,688.17
D.$925,925.93
Beginning three months from now, you want to be able to withdraw
$2,300 each quarter from your bank account to cover college
expenses. The account pays 1.45 percent interest per quarter. How
much do you need to have in your account today to meet your expense
needs over the next four years?
A. $32,633.32
B. $41,086.02
C. $28,785.91
D. $19,934.56
An insurance company is trying to sell you an investment policy that will pay you and...
Larry's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25,000 per year forever. Assume the required return on this investment is 7.9 percent How much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Policy value today
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Curly’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $34,000 per year forever. Suppose Curly’s told you the policy costs $590,000. Required: At what interest rate would this be a fair deal? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)