Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you are 46 and have a $180,000 face amount, 14-year, limited-payment, participating policy (dividends will be used to build up the cash value of

Suppose you are 46 and have a $180,000 face amount, 14-year, limited-payment, participating policy (dividends will be used to build up the cash value of the policy). Your annual premium is $630. The cash value of the policy is expected to be $7,200 in 14 years. Using time value of money and assuming you could invest your money elsewhere for a 8 percent annual yield, calculate the net cost of insurance. UseExhibit 1-B. (Do not round intermediate calculations. Round time value factor to 3 decimal places and final answer to the nearest whole dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Emerging Market Finance New Challenges And Opportunities

Authors: Bang Nam Jeon, Ji Wu

1st Edition

1839820594, 978-1839820595

More Books

Students also viewed these Finance questions

Question

Find the derivative of y= cos cos (x + 2x)

Answered: 1 week ago

Question

Guidelines for Informative Speeches?

Answered: 1 week ago