Larry's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25,000 per year forever. Assume the required return on this investment is 7.9 percent. How much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Policy value today
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Given:
Payment = $25,000
Interest rate = 7.9%
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- The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $40,000 per year forever. If the required return on this investment is 6.3 percent, how much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present valueCurly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25,000 per year forever. Assume the required return on this investment is 6 percent. Required: How much will you pay for the policy? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Policy value todayanswer The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $36,000 per year forever. If the required return on this investment is 5.8 percent, how much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) present value is?
- The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $24,000 per year forever. If the required return on this investment is 6.3 percent, how much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $40,000 per year forever. If the required return on this investment is 6.3 percent, how much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $15,000 per year forever. If the required return on this investment is 8 percent, how much will you pay for the policy? Suppose the Perpetual Life Insurance Co. told you the policy costs $195,000. At what interest rate would this be a fair deal? Please do not answer in handwritten..thanku
- The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. A sales associate for the company told you the policy costs $525,000. At what interest rate would this be a fair deal? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.Alfa Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $10,000 per year forever. If the guaranteed rate of return on this investment is 3.6 percent, how much will you pay for the policy? Can the excel and calculator solution be provided?(Solving for i) An insurance agent just offered you a new insurance product that will provide you with $963.60 12 years from now if you invest $200 today. What annual rate of interest would you earn if you invested in this product? The annual rate of interest you would earn if you invested in this product is %. (Round to the nearest whole percent.)
- The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $141,221 per year forever with the first payment coming in 9 years. Assume the required return on this investment is 12.16%. How much will you pay for the policy?The Real Deal Life Insurance company is offering to you to purchase a policy that will pay you, your children, your grandchildren, and all your heirs $ 37, 000 every year forever. The required return on this policy is 6.3 percent. What is the maximum amount of money that you should be willing to pay for this policy? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)Cury's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per forever. If the required return on this investment is 6 percent, how much will you pay for the policy?