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Suppose you are 40 and have a $50,000 face amount, 10 -year, limited-payment, participating policy (dividends will be used to build up the cash value
Suppose you are 40 and have a $50,000 face amount, 10 -year, limited-payment, participating policy (dividends will be used to build up the cash value of the policy) Your annual premium is $450. The cash value of the policy is expected to be $2000 in 10 years. Using time value of money and assuming you could invest your money elsewhere for a 6 percent annual yleld, calculate the net cost of insurance Use (Exhibit 1.A. Extaiblit.8. Exthibit 1.G. Exhibit1.D) Note: Use appropriate foctor(s) from the tables provided. Do not round intermediate calculations. Round time value factor to 3 decimal places and final answer to the nearest whole number
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