The Maybe Pay Life Insurance Co. is trying to sell

jagguarpaw January 26, 2017 0 Comments

Question: The Maybe Pay Life Insurance Co. is trying to sell…

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $29,000 per year forever. If the required return on this investment is 5.3 percent, how much will you pay for the policy? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)