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Suppose you are 45 and have a $290,000 foce amount, 15 -year, limited payment, participating policy (dividends will be used to build up the cash
Suppose you are 45 and have a $290,000 foce amount, 15 -year, limited payment, participating policy (dividends will be used to build up the cash value of the policy). Your annual premium is $1,015. The cash volue of the policy is expected to be $11,600 in 15 years. Using time value of money and assuming you could invest your money elsewhere for a 7 percent annual yleid, calculate the net cost of insurance. Use-(Exhibit1.A, Exhibit 1.8. Exhibit 1- C. Exhibit 1-D) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round time value factor to 3 decimal places and final answer to the nearest whicle number. Supaose you are 45 and have a $290,000 face amcunt, 15 year, limited payment, participating policy fividends wil be used to build up the cash value of the policyly. Your annual premium is $1015. The cash value of the policy is expected to be $11,600 in 15 years. Using time value of money and assuming you could invest your moncy clsewhere for a 7 percent annual yleld, calculate the net cost of Insurance. Use (Exhibit 1.8. Exhibil 1-B, Exhibit.1-C. Exhibit 1.D) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate ealculations. Round time value factor to 3 decimal places and final answer to the nearest whole number
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