Larry’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $32,000 per year forever. Assume the required return on this investment is 7.2 percent. How much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

$444,444.44

Explanation:

Larry's life insurance corporation is trying to sell an investment policy that will pay you and your heirs a total amount of $32,000 per year

The required return on this investment is 7.2%

= 7.2/100

= 0.072

Since the cash flow is a perpetuity then, the amount that will be paid for the policy can be calculated as follows

PV= C/r

= $32,000/0.072

= $444,444.44

Hence the amount of money that will be paid for the policy is $444,444.44

there's 11 people for the 1st position. then, no matter who gets it, there's only 10 left for the second, and then 9 left for the third. 11 x 10 x 9 = 990.   the answer is there are 990 different ways the positions can be filled by these applicants

answerindividual preferences are not revealed in the market for the good;