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emmasim [6.3K]
2 years ago
11

Larry’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $42,000 per year forever.

Assume the required return on this investment is 6.7 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.)
Business
1 answer:
lisabon 2012 [21]2 years ago
8 0

The amount of $626,865.67 is the lump sum that you wil pay for the investment policy today.

<h3>What is an investment policy?</h3>

This is an policy that is designed to periodically pay the insured a specific sum over a period of time

<u>Given data</u>

Payment per year = $42,000

Required return = 6.7%

Present value = Payment per year / Required return

Present value = $42,000 / 0.067

Present value = $626,865.67

Therefore, the amount of $626,865.67 is the lump sum that you wil pay for the investment policy today.

Read more about investment policy

<em>brainly.com/question/12301548</em>

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<h3>What is a Developer of a Building?</h3>

Developers develop and builders build. That is, a developer takes raw land, obtains the necessary permits, creates building lots, and puts in the sewers, the water and electric lines, the streets and curbs. Then the builder comes in and erects the house. A builder also can be a developer.

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8 0
2 years ago
When one group controls an industry or market by being the only provider, this is called _____.
e-lub [12.9K]
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6 0
3 years ago
Ferkil Corporation manufacturers a single product that has a selling price of $25.00 per unit. Fixed expenses total $52,000 per
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Answer:

8375 units

Explanation:

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