FREE Trial S
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alvinpurchasedauniversallifeinsurancepolicyattheageof35.Heisnow43yearsoldandatthe endoftheeighthyearofthepolicy.Thepolicywassoldwithafaceamountis$100,000anddeath benefitoption1andaplannedpremiumof$1,500peryearwhichAlvinhaspaid.Atthebeginningof year8,thecashvalueofthepolicywas$7,800anditgrewby$1,000duringtheyear.Thepolicywas creditedwitha$1,100dividend.IfAlvinpurchasedanannualrenewabletermpolicynow,itwouldcost him$400for$100,000ofcoverage.BasedonYearlyRateofReturn,whatisthereturnonAlvin's policyduringtheeighthyear? Omitpercentsign.

Alvinpurchasedauniversallifeinsurancepolicyattheageof35.Heisnow43yearsoldandatthe endoftheeighthyearofthepolicy.Thepolicywassoldwithafaceamountis$100,000anddeath benefitoption1andaplannedpremiumof$1,500peryearwhichAlvinhaspaid.Atthebeginningof year8,thecashvalueofthepolicywas$7,800anditgrewby$1,000duringtheyear.Thepolicywas creditedwitha$1,100dividend.IfAlvinpurchasedanannualrenewabletermpolicynow,itwouldcost him$400for$100,000ofcoverage.BasedonYearlyRateofReturn,whatisthereturnonAlvin's policyduringtheeighthyear? Omitpercentsign.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Exchange Rates and International Finance

Exchange Rates and International Finance

Authors: Laurence Copeland

6th edition

ISBN: 273786040, 978-0273786047

More Books

Students also viewed these Finance questions

Question

★★★★★
Find the area between the parabolas y = 2x 2 + 1 and y = x 2 + 5.

Answered: 1 week ago

Question

★★★★★
Draw the circuit diagram for a network that has the following Z parameters [6+ j4 4 + j6 [Z] 4 +j6 10 + j]

Answered: 1 week ago

Question

★★★★★
2-lbm of water at 300 psia fill a weighted piston-cylinder device whose volume is 2.5 ft3. The water is then heated at constant pressure until the temperature reaches 500F. Determine the resulting...

Answered: 1 week ago

Question

★★★★★
Let h(x) = P{ T i=1 Xi > x} where X1, X2,... are independent random variables having distribution function Fe and T is independent of the Xi and has probability mass function P{T = n} = n(1 ), n 0....

Answered: 1 week ago

Question

★★★★★
Mary Palmquist, a Wall Street securities analyst, wants to determine the relationship between Chile's gross domestic product (GDP) and the profits (after taxes) of the Carlton Company. She obtains...

Answered: 1 week ago

Question

★★★★★
M8-24. Reconciling Common Stock and Treasury Stock Balances Following is the stockholders' equity section from the Abercrombie & Fitch Co. balance sheet January 30, 2016 January 31, 2015 $ Class A...

Answered: 1 week ago

Question

★★★★★
In Table 2, you present the areas that correspond to the distances at which you held your flashlight. How did the area relate to the distance

Answered: 1 week ago

Question

★★★★★
Exclusive groups often use punishment to ensure group members follow the rules. Usually the greatest punishment is being excluded from the group. Look at the the story: manson family Each of these...

Answered: 1 week ago

Question

★★★★★
Spring 2023 Q3. A cylindrical specimen of aluminum having a diameter of 12.5 mm and a gauge length of 50.80 mm is pulled in tension. Use the load-elongation characteristics tabulated below to...

Answered: 1 week ago

Question

★★★★★
As discussed, the following are the brand's steps in setting price: Select the price objective Determine demand Estimate costs Analyze competitor's price mix Select pricing method Select final price...

Answered: 1 week ago

Question

★★★★★
a. Brodie is uncertain if the cost presented in Exhibit 2 are appropriate for determining the EOQs. What changes would you recommend, and why? Should the cost of the three idle part-time workers be...

Answered: 1 week ago

Question

★★★★★
Based on the method of least squares, what are the estimated weights of balls A and B? Round your answer to the nearest tenth in the format of x.x). = 2.6 B= 3.6 Answer 1: Correct! 2.6 Answer 2:...

Answered: 1 week ago

Question

★★★★★
This is a game theory question, I'm having a very hard time understanding this question. Please help me solve this. Two buyers bid in an auction for a single object. Each can bid any integer amount...

Answered: 1 week ago

Question

★★★★★
_____ 8. data that have been collected, tabulated, and distributed by an outside source

Answered: 1 week ago

Question

★★★★★
_____10. the marketing function that links consumer, customer, and public with marketers a. marketing concept b. marketing strategy c. time series analysis d. secondary data e. primary data f. data...

Answered: 1 week ago

Question

★★★★★
What is the major purpose of A balance sheet? b. An income statement? Explain. c. A statement of cash flows?

Answered: 1 week ago

Previous QuestionNext Question