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At what interest rate would this be a fair deal

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Reference no: EM132826410

Question - If you were an athlete negotiating a contract, would you want a big signing bonus payable immediately and smaller payments in the future, or vice versa? How about looking at it from the team's perspective?

Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $36,000 per year forever. Suppose Curly's told you the policy costs $610,000. At what interest rate would this be a fair deal?

Reference no: EM132826410

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