How much will you pay for the policy

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Reference no: EM131825356

The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $19,000 per year forever.

If the required return on this investment is 6 percent, how much will you pay for the policy? (Round your answer to 2 decimal places. (e.g., 32.16))

Present value $

Suppose the Perpetual Life Insurance Co. told you the policy costs $480,000. At what interest rate would this be a fair deal? (Round your answer to 2 decimal places. (e.g., 32.16))

Interest rate %

Reference no: EM131825356

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