Answer:
$744,680.85
Explanation:
Data provided as per the question below:-
Payment received = $35,000
Required rate of return = 4.7%
The computation of amount paid for the policy is shown below:-
Present value of a perpetuity payment = Payment received ÷ Required rate of return
= $35,000 ÷ 0.047
= $744,680.85
Therefore, for computing the present value we simply divide required rate of return by payment received
