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    Blue Grass Life: Determining the perpetuity values of a life insurance policy

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    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?

    © BrainMass Inc. brainmass.com March 4, 2021, 5:36 pm ad1c9bdddf
    https://brainmass.com/business/annuity/blue-grass-life-determining-the-perpetuity-values-of-a-life-insurance-policy-2356

    Solution Summary

    The solution shows the calculation for the answer of how much will be paid for the policy.

    $2.49

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