Liam O'Kelly is 20 years old and is thinking about buying a term life insurance policy with his wife as the beneficiary. The quoted annual premium for Liam is $8.418.41 per thousand dollars of insurance coverage. Because Liam wants a $80 comma 00080,000 policy (which is 2.5 times his annual salary), the annual premium would be $673673, with the first payment due immediately (i.e., at age 21). A friend of Liam's suggests that the $673673 annual premium should be deposited in a good mutual fund rather than in the insurance policy. "If the mutual fund earns 1010% per year, you can become a millionaire by the time you retire at age 65," the friend advises

Liam O'Kelly is 20 years old and is thinking about buying a term life insurance policy with his wife as the beneficiary. The quoted annual premium for Liam is $8.41 per thousand dollars of insurance coverage. Because Liam wants a $80,000 policy (which is 2.5 times his annual salary), the annual premium would be $673, with the first payment due immediately (i.e., at age 21). A friend of Liam's suggests that the $673 annual premium should be deposited in a good mutual fund rather than in the insurance policy, if the mutual fund earns 10% per year, you can become a millionaire by the time you retire at age 65," the friend advises. Click the icon to view the interest and annuity table for discrete compounding when , 10% per year. a. Is the friend's statement really true? The future value of annual premiums deposited in a good mutual fund is $1 . (Round to the nearest dollar.)