Susan has purchased a whole life policy with a death benefit of $380,000. Assuming that she dies in 10 years and the average inflation has been 3 percent, what is the value of the purchasing power of the proceeds? Use Exhibit 1-A (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Purchasing power of proceeds Exhibit 1-A Future value (compounded sum) of $1 after a given number of time periods 2% 3% 4% 5% 6% Period 1 1% 1.010 1.040 1.050 1.020 1.040 1.030 1.061 2 1.020 1.082 1.103 3 1.030 1.061 1.093 1.125 1.158 4 1.041 1.082 1.126 1.170 1.216 5 1.051 1.104 1.159 1.217 1.276 6 1.062 1.126 1.194 1.265 1.340 7 1.072 1.149 1.230 1.316 1.407 8 1.083 1.172 1.267 1.369 1.477 = 9 1.094 1.195 1.305 1.423 1.551 10 1.105 1.219 1.344 1.480 1.629 11 1.116 1.243 1.384 1.539 1.710 12 1.127 1.268 1.426 1.601 1.796 13 1.138 1.294 1.469 1.665 1.886 14 1.149 1.319 1.513 1.732 1.980 15 1.161 1.346 1.558 1.801 2.079 16 1.173 1.373 1.605 1.873 2.183 17 1.184 1.400 1.653 1.948 2.292 18 1.196 1.428 1.702 2.026 2.407 19 1.208 1.457 1.754 2.107 2.527 20 1.220 1.486 1.806 2.191 2.653 25 1.282 1.641 2.094 2.666 3.386 30 1.348 1.811 2.427 3.243 4.322 40 1.489 2.208 3.262 4.801 7.040 50 1.645 2.692 4.384 7.107 11.467 Period 1 1.120 1.130 1.140 1.150 1.160 2 1.254 1.277 1.300 1.323 1.346 3 1.405 1.443 1.482 1.521 1.561 4 1.574 1.630 1.689 1.749 1.811 5 1.762 1.842 1.925 2.011 2.100 6 1.974 2.082 2.195 2.313 2.436 7 2.211 2.353 2.502 2.660 2.826 8 2.476 2.658 2.853 3.059 3.278 9 2.773 3.004 3.252 3.518 3.803 10 3.106 3.395 3.707 4.046 4.411 11 3.479 3.836 4.226 4.652 5.117 12 3.896 4.335 4.818 5.350 5.936 13 4.363 4.898 5.492 6.153 6.886 14 4.887 5.535 6.261 7.076 7.988 15 5.474 6.254 7.138 8.137 9.266 16 6.130 7.067 8.137 9.358 10.748 17 6.866 7.986 9.276 10.761 12.468 18 7.690 9.024 10.575 12.375 14.463 19 8.613 10.197 12.056 14.232 16.777 20 9.646 11.523 13.743 16.367 19.461 25 17.000 21.231 26.462 32.919 40.874 30 29.960 39.116 50.950 66.212 85.850 40 93.051 132.782 188.884 267.864 378.721 50 289.002 450.736 700.233 1083.657 1670.704 12% 13% 14% 15% 16% 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 1.898 2.012 2.133 2.261 2.397 2.540 2.693 2.854 3.026 3.207 4.292 5.743 10.286 18.420 1.170 1.369 1.602 1.874 2.192 2.565 3.001 3.511 4.108 4.807 5.624 6.580 7.699 9.007 10.539 12.330 14.426 16.879 19.748 23.106 50.658 111.065 533.869 2566.215 17% 7% 1.070 1.145 1.225 1.311 1.403 1.501 1.606 1.718 1.838 1.967 2.105 2.252 2.410 2.579 2.759 2.952 3.159 3.380 3.617 3.870 5.427 7.612 14.974 29.457 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 14.129 16.672 19.673 23.214 27.393 62.669 143.371 750.378 3927.357 18% 8% 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 3.426 3.700 3.996 4.316 4.661 6.848 10.063 21.725 46.902 1.190 1.416 1.685 2.005 2.386 2.840 3.379 4.021 4.785 5.695 6.777 8.064 9.596 11.420 13.590 16.172 19.244 22.901 27.252 32.429 77.388 184.675 1051.668 5988.914 19% 9% 1.090 1.188 1.295 1.412 1.539 1.677 1.828 1.993 2.172 2.367 2.580 2.813 3.066 3.342 3.642 3.970 4.328 4.717 5.142 5.604 8.623 13.268 31.409 74.358 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 18.488 22.186 26.623 31.948 38.338 95.396 237.376 1469.772 9100.438 20% 10% 11% 1.100 1.110 1.210 1.232 1.331 1.368 1.464 1.518 1.611 1.685 1.772 1.870 1.949 2.076 2.144 2.305 2.358 2.558 2.594 2.839 2.853 3.152 3.138 3.498 3.452 3.883 3.797 4.310 4.177 4.785 4.595 5.311 5.054 5.895 5.560 6.544 6.116 7.263 6.727 8.062 10.835 13.585 17.449 22.892 45.259 65.001 117.391 184.565 1.250 1.300 1.563 1.690 1.953 2.197 2.441 2.856 3.052 3.713 3.815 4.827 4.768 6.275 5.960 8.157 7.451 10.604 9.313 13.786 11.642 17.922 14.552 23.298 18.190 30.288 22.737 39.374 28.422 51.186 35.527 66.542 44.409 86.504 55.511 112.455 69.389 146.192 86.736 190.050 264.698 705.641 807.794 2619.996 7523.164 36118.865 70064.923 497929.223 25% 30%
