Investment policy

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The Perpetual Life Ins. Co. is trying to sell you an investment policy that will pay you and your heirs one payment per year forever. The first payment is $12,000, arrived 17 years from now, and the payments grow at 2% per year. If the required rate of return on this investment is 4.7%, how much will you pay for the policy today?

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Reference no: EM131861319

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