How much will you pay for the policy assuming the required

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Reference no: EM131883437

1. If the Alfa Life Insurance Co. will pay you and your heirs $1 at the beginning of each year forever, how much will you pay for the policy assuming the required return on this investment is 1 percent?

2. Using data in Question 1, what you will pay for the policy if the Alfa will pay you and your heirs at the end of each year forever?

3. Using data in Question 1, if the Alfa Life Insurance Co. will pay you and your heirs $1 at the beginning of each year forever, will is the future value of the policy?

4. Using data in Question 1, if the Alfa will pay you and your heirs at the end of each year forever, will is the future value of the policy?

Reference no: EM131883437

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