Question
55. Todd purchased a $100,000 participating whole life policy from the very well regarded Hawk Life Ins Co (Hawk). The annual premium is $2,280. Hawk
55. Todd purchased a $100,000 participating whole life policy from the very well regarded Hawk Life Ins Co (Hawk). The annual premium is $2,280. Hawk projects dividends for the 20 years to be $15,624. Hawk also projects the cash value after 20 years will be $35,260. If the premiums were invested at 5% for 20 years, the premiums would grow to $79,156. If the dividends were accumulated at 5% for 20 years, they would grow to be $24,400. The amount to which $1 deposited annually will accumulate in 20 years at 5% is $34.719. Based on this information, what is the net payment cost per thousand per year over the 20 year period?
Group of answer choices
27.38
5.62
15.77
13.75
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