Suppose you are 40 and have a $80,000 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 $720. The cash value of the policy is expected to be $3,200 in 10 years. Using time value of money and assuming you could invest your money elsewhere for a 6 percent annual yield, calculate the net cost of insurance. Use Exhibit 1-B. (Do not round intermediate calculations. Round time value factor to 3 decimal places and final answer to the nearest whole number.) Net cost of insurance Period 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.8091 14.947 16.097 17.258 18.4301 19.615 20.811 22.019 28.243 34.785 48.886 64.463 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13,412 14.680 15,974 17.293 18.639 20.012 21.412 22.841 24.297 32.030 40.568 60.402 84.579 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 20.157 21.762 23.414 25.1171 26.870 36.459 47.575 75.401 112.797 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.5831 12.006 13.486 15.026 16.627 18.292 20.024 21.825 23.698 25.645 27.671 29.778 41.646 56.085 95.026 152.667 5% 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 11.027 12.578 14.207 15.917 17.713 19.599 21.579 23.657 25.840 28.132 30.5391 33.066 47.727 66.439 120.800 209.348 6% 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11.491 13.181 14.972 16.870 18.882 21.015 23.276 25.673 28.2131 30.906 33.760 36.786 54.865 79.058 154.762 290.336 7% 1.000 2.070 3.215 4.440 5.751 7.153 8.654 10.260 11.978 13.816 15.784 17.888 20.141 22.550 25.129 27.888 30.840 33.999 37.379 40.995 63.249 94.461 199.6351 406.5291 89% 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 30.324 33.750 37.450 41.446 45.762 73.106 113.283 259.057 573.770 9% 1.000 2.090 3.278 4.573 5.985 7.523 9.2001 11.028 13.021 15.193 17.560 20.141 22.9531 26.019 29.361 33.003 36.974 41.301 46.018 51.160 84.7011 136.308 337.882 815.084 10% 1.000 2.100 3.310 4.641 6.105 7.716 9.487 11.436 13.579 15.937 18.531 21.384 24.523 27.975 31.772 35.950 40.545 45.599 51.159 57.275 98.347 164.494 442.593 1163.909 11% 1.000 2.110 3.342 4.7101 6.228 7.913 9.783 11.8591 14.164 16.722 19.561 22.713 26.212 30.0951 34.4051 39.190 44.501 50.396 56.939 64.203 114.413 199.021 581.826 1668.771 Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.0291 32.393 37.2801 42.753 48.884 55.750 63.440 72.052 133.334 241.333 767.091 2400.018 13% 1.000 2.130 3.407 4,850 6.480 8.323 10.405 12.757 15.416 18.420 21.814 25.650 29.985 34.883 40.417 46.672 53.739 61.725 70.749 80.947 155,620 293.199 1013.704 3459.507 14% 1.000 2.140 3.440 4.921 6.610 8.536 10.730 13.233 16.085 19.3371 23.045 27.271 32.089 37.581 43.842 50.980 59.118 68.394 78.969 91.025 181.871 356.787 1342.025 4994.521 15% 1.000 2.150 3.473 4.993 6.742 8.754 11.067 13.727 16.786 20.304 24.349 29.002 34.352 40.505 47.580 55.717 65.075 75.836 88.212 102.444 212.793 434.745 1779.090 7217.716 16% 1.000 2.160 3.506 5.066 6.877 8.977 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51.660 60.925 71.673 84.141 98.603 115.380 249.214 530.312 2360.757 10435.649 17% 1.000 2.170 3.539 5.141 7.014 9.207 11.772 14.773 18.285 22.393 27.200 32.824 39.404 47.103 56.110 66.649 78.979 93.406 110.285 130.033 292.105 647.439 3134.522 15089.502 18% 1.000 2.180 3.572 5.215 7.154 9.442 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50.818 60.9651 72.939 87.068 103.740 123.414 146.628 342.603 790.948 4163.213 21813.094 19% 1.000 2.190 3.606 5.291 7.297 9.683 12.523 15.902 19.923 24.709 30.404 37.180 45.244 54.841 66.261 79.850 96.022 115.266 138.166 165.418 402.042 966.712 5529.829 31515.340 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.7991 25.959 32.150 39.581 48.497 59.196 72.0351 87.442 105.931 128.117 154.740 186.688 471.981 1181.882 7343.858 45497.191 26% 30% 1.000 1.000 2.250 2.300 3.813 3.990 5.766 6.187 8.207 9.0431 11.259 12.756 5.073 17.583 19.842 23.858 25.802 32.015 33.253 42.619 42.566 56.405 54.208 74.327 68.7601 97.625 86.949 127.913 109.687 167.286 138.109 218.472 173.636 285.014 218.045 371.518 273.556 483.973 342.945 630.165 1054.791 2348.803 3227.174 8729.985 30088.655 120392.883 280255.693 1659760.743 Suppose you are 40 and have a $80,000 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 $720. The cash value of the policy is expected to be $3,200 in 10 years. Using time value of money and assuming you could invest your money elsewhere for a 6 percent annual yield, calculate the net cost of insurance. Use Exhibit 1-B. (Do not round intermediate calculations. Round time value factor to 3 decimal places and final answer to the nearest whole number.) Net cost of insurance Period 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.8091 14.947 16.097 17.258 18.4301 19.615 20.811 22.019 28.243 34.785 48.886 64.463 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13,412 14.680 15,974 17.293 18.639 20.012 21.412 22.841 24.297 32.030 40.568 60.402 84.579 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 20.157 21.762 23.414 25.1171 26.870 36.459 47.575 75.401 112.797 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.5831 12.006 13.486 15.026 16.627 18.292 20.024 21.825 23.698 25.645 27.671 29.778 41.646 56.085 95.026 152.667 5% 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 11.027 12.578 14.207 15.917 17.713 19.599 21.579 23.657 25.840 28.132 30.5391 33.066 47.727 66.439 120.800 209.348 6% 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11.491 13.181 14.972 16.870 18.882 21.015 23.276 25.673 28.2131 30.906 33.760 36.786 54.865 79.058 154.762 290.336 7% 1.000 2.070 3.215 4.440 5.751 7.153 8.654 10.260 11.978 13.816 15.784 17.888 20.141 22.550 25.129 27.888 30.840 33.999 37.379 40.995 63.249 94.461 199.6351 406.5291 89% 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 30.324 33.750 37.450 41.446 45.762 73.106 113.283 259.057 573.770 9% 1.000 2.090 3.278 4.573 5.985 7.523 9.2001 11.028 13.021 15.193 17.560 20.141 22.9531 26.019 29.361 33.003 36.974 41.301 46.018 51.160 84.7011 136.308 337.882 815.084 10% 1.000 2.100 3.310 4.641 6.105 7.716 9.487 11.436 13.579 15.937 18.531 21.384 24.523 27.975 31.772 35.950 40.545 45.599 51.159 57.275 98.347 164.494 442.593 1163.909 11% 1.000 2.110 3.342 4.7101 6.228 7.913 9.783 11.8591 14.164 16.722 19.561 22.713 26.212 30.0951 34.4051 39.190 44.501 50.396 56.939 64.203 114.413 199.021 581.826 1668.771 Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.0291 32.393 37.2801 42.753 48.884 55.750 63.440 72.052 133.334 241.333 767.091 2400.018 13% 1.000 2.130 3.407 4,850 6.480 8.323 10.405 12.757 15.416 18.420 21.814 25.650 29.985 34.883 40.417 46.672 53.739 61.725 70.749 80.947 155,620 293.199 1013.704 3459.507 14% 1.000 2.140 3.440 4.921 6.610 8.536 10.730 13.233 16.085 19.3371 23.045 27.271 32.089 37.581 43.842 50.980 59.118 68.394 78.969 91.025 181.871 356.787 1342.025 4994.521 15% 1.000 2.150 3.473 4.993 6.742 8.754 11.067 13.727 16.786 20.304 24.349 29.002 34.352 40.505 47.580 55.717 65.075 75.836 88.212 102.444 212.793 434.745 1779.090 7217.716 16% 1.000 2.160 3.506 5.066 6.877 8.977 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51.660 60.925 71.673 84.141 98.603 115.380 249.214 530.312 2360.757 10435.649 17% 1.000 2.170 3.539 5.141 7.014 9.207 11.772 14.773 18.285 22.393 27.200 32.824 39.404 47.103 56.110 66.649 78.979 93.406 110.285 130.033 292.105 647.439 3134.522 15089.502 18% 1.000 2.180 3.572 5.215 7.154 9.442 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50.818 60.9651 72.939 87.068 103.740 123.414 146.628 342.603 790.948 4163.213 21813.094 19% 1.000 2.190 3.606 5.291 7.297 9.683 12.523 15.902 19.923 24.709 30.404 37.180 45.244 54.841 66.261 79.850 96.022 115.266 138.166 165.418 402.042 966.712 5529.829 31515.340 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.7991 25.959 32.150 39.581 48.497 59.196 72.0351 87.442 105.931 128.117 154.740 186.688 471.981 1181.882 7343.858 45497.191 26% 30% 1.000 1.000 2.250 2.300 3.813 3.990 5.766 6.187 8.207 9.0431 11.259 12.756 5.073 17.583 19.842 23.858 25.802 32.015 33.253 42.619 42.566 56.405 54.208 74.327 68.7601 97.625 86.949 127.913 109.687 167.286 138.109 218.472 173.636 285.014 218.045 371.518 273.556 483.973 342.945 630.165 1054.791 2348.803 3227.174 8729.985 30088.655 120392.883 280255.693 1659760.743