10. Calculating Perpetuity Values Larry's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25,000 per year forever. If the required return on this...

I’ve submitted #10 already. Need help with number 11

Extracted text: 10. Calculating Perpetuity Values Larry's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25,000 per year forever. If the required return on this investment is 4 percent, how much will you pay for the policy? 11. Calculating Perpetuity Values In the previous problem, suppose Larry's told you the policy costs $645,000. At what interest rate would this be a fair deal? LO 1 LO 1