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Curly’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $29,000 per year forever. A representative for Curly’s tells you the policy costs $540,000. At what interest rate would this be a fair deal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Interest rate %

User Ram Koti
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1 Answer

1 vote

Answer:

5.37%

Step-by-step explanation:

$540,000 = 29000/r

r = 29000/540000

r = 0.0537

rate = 5.37%

User DJafari
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