Should you purchase the insurance product

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Reference no: EM13153538

You're thinking of purchasing an insurance product at the following terms:

You make 10 payments, beginning today with a payment of $250 (i.e., 1 payment today and 9 additional annual payments).

Then, in the year after the 10 payments are made, you will receive 10 annual payments of $500 each.

Your personal discount rate is 7.5%. Should you purchase the insurance product?

Reference no: EM13153538

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