Question
Julia Baker died, leaving to her husband Alan an insurance policy contract that provides that the beneficiary (Alan) can choose any one of the following
Julia Baker died, leaving to her husband Alan an insurance policy contract that provides that the beneficiary (Alan) can choose any one of the following four options. Money is worth 2.50%per quarter, compounded quarterly. Compute Present value if:
A. $55,260 immediate cash.
B.$4,040 every 3 months payable at the end of each quarter for 5 years.
C. $19,160 immediate cash and $1,916 every 3 months for 10 years, payable at the beginning of each 3-month period.
d. $4,040 every 3 months for 3 years and $1,490 each quarter for the following 25 quarters, all payments payable at the end of each quarter.
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