6. Find the policy value today

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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6. Find the policy value today
AL MGMT 7120
Question 6- HW5- Connect
Channel content - YouTub
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Larry's Life Insurance Co. is trying to sell you an investment policy that will pay you and
your heirs $43,000 per year forever. Assume the required return on this investment is
6.8 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.)
Policy value today
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Transcribed Image Text:AL MGMT 7120 Question 6- HW5- Connect Channel content - YouTub ezto.mheducation.com/ext/map/index.html?_con3Dcon&external_browser=0&launch Saved Larry's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $43,000 per year forever. Assume the required return on this investment is 6.8 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.) Policy value today < Prev of 9 e here to search
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