Eastern Shore 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 required return on this investment is 5.5 percent, how much will you pay for the policy?
A) $178,407.26
B) $181,818.18
C) $185,000.00
D) $187,511.02
E) $191,001.74
Correct Answer:
Verified
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