How much will you pay for the policy
Question: Blue Grass Life insurance 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 12%, how much will you pay for the policy?
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Calculate the monthly repayments on a $20,000 loan if interest rates are 12% p.a. compounded monthly
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Determine what payments are required to repay a $100,000 loan over 20 years in equal monthly installments if interest rates remain at 9% p.a.
If the required return on this investment is 12%, how much will you pay for the policy?
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