Suppose you are 20 and have a $100,000 face amount, 25-year, limited-payment, participating life insurance policy (dividends will be used to build up the policy's cash value). Your annual premium is $1,200. The policy's cash value is expected to be $10,000 in 25 years. Using the time value of moncy and assuming you could invest your money elsewhere for a 5 percent annual yield, what is your net cost of insurance? Use an interest factor of 23 to calculate the Time Value of Money of the annual premium of $1,200. $18,200 $18,600 $17,200 $17,600 QUESTION 4 Nyla's parents are in good health and have reasonably secure jobs. Each of them makes about $100,000 annually. They own a house with a $500,000 mortgage and owe $10,000 on car loans, $5,000 in personal debt, and $6,000 in credit card loans. They have no other debt. They have no plans to increase the size of their family soon. They estimate that funeral expenses will be $5,000. Their total individual life insurance need using the DINK method is: $10,500$365,500$15,500$265,500