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Shelly purchased a $50,000 nonparticipating whole life insurance policy. The annual premium was $1,278. The cash value of the policy after 10 years will be
Shelly purchased a $50,000 nonparticipating whole life insurance policy. The annual premium was $1,278. The cash value of the policy after 10 years will be $13,740. Assume a 5% interest rate. What is the traditional net cost of this policy, per thousand per year, over the first 10 years the policy is in force?
Please explain how you complete every step, I know the answer will be $-1.92. I just am trying to figure out how its calculated
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