Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dave's Family Restaurant is paying 100% of the cost oflife insurance premiums for his 50 regular employees.Assume: It is a policy that pays a benefit

Dave's Family Restaurant is paying 100% of the cost oflife insurance premiums for his 50 regular employees.Assume:

It is a policy that pays a benefit of $150,000.00 to the family of any employee who dies; and

The actuaries assume 1 of the employees might die each 8 years; and

To cover its costs of doing business AND make a small profit the insurance company will charge 12% MORE than the basic cost of providing the benefit.

Calculate theMONTHLYcost of thePREMIUMSpaid by Dave.SHOW YOUR CALCULATIONS

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

Financial & Managerial Accounting

Authors: Jan Williams

16th Edition

78111048, 978-0078111044

More Books

Students also viewed these Accounting questions

Question

2. In what way can we say that method affects the result we get?

Answered: 1 week ago