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Problem 6-11 Calculating Perpetuity Values (LO1) The Sutherland Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $49,000 per year forever. If the required return on this investment is 7.7%, how much will you pay for the policy? (Round the final answer to 2 decimal places. Omit $ sign in your response.)   Present value           $

Problem 6-11 Calculating Perpetuity Values (LO1) The Sutherland Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $49,000 per year forever. If the required return on this investment is 7.7%, how much will you pay for the policy? (Round the final answer to 2 decimal places. Omit $ sign in your response.)   Present value           $

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Problem 6-11 Calculating Perpetuity Values (LO1)

The Sutherland Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $49,000 per year forever. If the required return on this investment is 7.7%, how much will you pay for the policy? (Round the final answer to 2 decimal places. Omit $ sign in your response.)

 

Present value           $ 

 
 
 
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