Answer to Question #91327 in Economics for Amanda

Question

You are thinking about buying an insurance product with the following specifications: the offered insurance product requires you to make payments semi-annually of $50 and do so for the next 20 years (first payment six months from today.). if your required rate of return is 6% per year (i.e. effective), what amount of money should the insurance product offer to pay you at the end of 20 years.