An insurance company is offering a new policy to its customers. Typically, the policy is bought...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664c1cfb98dc4_187664c1cfb07679.jpg)
Transcribed Image Text:
An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: $ 900 Second birthday: $ 900 Third birthday: $ 1,000 Fourth birthday: $ 1,000 Fifth birthday: $ 1,100 Sixth birthday: $ 1,100 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $231,000. If the relevant interest rate is 9 percent for the first six years and 6 percent for all subsequent years, what is the value of the policy at the child's 65th birthday? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Child's 65th birthday An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: $ 900 Second birthday: $ 900 Third birthday: $ 1,000 Fourth birthday: $ 1,000 Fifth birthday: $ 1,100 Sixth birthday: $ 1,100 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $231,000. If the relevant interest rate is 9 percent for the first six years and 6 percent for all subsequent years, what is the value of the policy at the child's 65th birthday? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Child's 65th birthday
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
The character wrapper class provides numerous methods for O a. adding two char variables b. testing and converting char variables O c. testing string objects O d. converting string variables
-
The Booth Company's sales are forecasted to double from $1,000 in 2013 to $2,000 in 2014. Here is the December 31, 2013, balance sheet: Booth's fixed assets were used to only 50% of capacity during...
-
The following time series plot presents the number of hurricanes originating in the Atlantic Ocean for each year from 1850 through 2015. a. Estimate the largest number of hurricanes to occur in a...
-
6. ETHICS Trial practice also is dramatically different in Britain. The parties' solicitors do not go into court. Courtroom work is done by different lawyers, called barristers. The barristers have...
-
Olive Corporation was formed and began operations on January 1, 2018. The corporations income statement for the year and the balance sheet at year-end are presented below. The corporation made...
-
Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $597,900 and has $347,600 of accumulated depreciation to date, with a new machine that has a...
-
Which form of cyberbait (financial, value-added, convenience) might best help solve the problem of shopping cart abandonment? Would any form of cyberbait help alleviate consumer concerns about...
-
Jackie's Dance Studio created a $220 imprest petty cash fund. During the month, the fund custodian authorized and signed petty cash tickets as follows: Petty Cash Ticket No. Item Account Debited...
-
Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning...
-
Billy became frustrated with the waiting time for his permanent residency linked to his Partner Class BS subclass 801 visa. In particular, he feels like it has been impeding his employment...
-
Stash just bought a used Bianchi bicycle through Offerup, which is an app that connects buyers with sellers. Stash is a bike enthusiast who has traditionally only bought new bikes. This time, wanting...
-
What is the future of global trade and how does it affect the US economy and (another country that you'd like to work in someday? Please review the following article...
-
Write a program for merge-sort. Given array elements are A[]={ 90,52,19,88,30,27,18,44}
-
Reichenbach Co., organized in 2018, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2018 and 2019. Instructions...
-
Utta Inc. allows each employee to earn 15 paid vacation days each year with full pay. Unused vacation time can be carried over to the next year. If not taken during the next year, unused vacation...
-
Bloy Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the following biweekly period. Bloy accrues salaries expense only at its December 31 year-end. Data...
-
Anne Taylor Company borrowed cash on August 1, 2020, and signed a \(\$ 33,300\) (face amount), one-year note payable, due on July 31, 2021. The accounting period of Anne Taylor ends December 31....
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App