e Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. A sales associate for the company told you the policy costs $525,000. At what interest rate would this be a fair deal? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g

e Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. A sales associate for the company told you the policy costs $525,000. At what interest rate would this be a fair deal? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 4P

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answer The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $36,000 per year forever. If the required return on this investment is 5.8 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.) present value is?
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