(50) buys a 300,000 whole life insurance with 6,629.76 premiums payable for 15 years. of year of death and premiums are payable at the beginning of the year. The plan has the following expenses: 2,000 underwriting 25% of first premium commission to agent 5% of second through 15th premium renewal expenses $500 termination expenses Using an interest rate of 5% Given: A55 0.257527 äss 10T 7.9580 55 Find the policy value after 5 years.

(50) buys a 300,000 whole life insurance with 6,629.76 premiums payable for 15 years. of year of death and premiums are payable at the beginning of the year. The plan has the following expenses: 2,000 underwriting 25% of first premium commission to agent 5% of second through 15th premium renewal expenses $500 termination expenses Using an interest rate of 5% Given: A55 0.257527 äss 10T 7.9580 55 Find the policy value after 5 years.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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If $1000 is deposited at the end of each year for 5 years into an ordinary annuity earning 8.99% compounded annually, construct a balance sheet showing the interest earned during each year and the balance at the end of each year. Complete the balance sheet. Period Amount Interest Balance 1 $1000.00 2 $1000.00 3 $1000.00 4 $1000.00 $ $4 $1000.00 $4 $ (Round to the nearest cent as needed.)
1 You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest) $992,000 17.4% 43 years January 1, 2021 Use the installment method - not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. Do NOT put in minus signs, answer all positive numbers. Loan amount Interest Rate Life Date of Loan Required: 1. What is the annual payment (round to the nearest $)? $4 2. What are the total interest payments (round to the nearest $)? $. 3. After 16 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? 1% 4. After 16 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage polint)? 1%
An insurance company offers you an end-of-year annuity of $48,000 per year for the next 20 years. They claim your return on the annuity is 9 percent. What should you be willing to pay today for this annuity? a. $408,672 b. $438,192 c. $398,144 d. $429,600
Find the value of the annuity and the interest. nt P[(1 +n' -1] A = A = P =- nt Periodic Deposit: $2500 at the end of every three months Rate: 4.5% compounded quarterly Time: 9 years O A. $79,006; $10,994 O B. $110,204; $20,204 O C. $332,426; $242,426 O D. $106,505; $16,505
Forafullycontinuous 20yeartermpolicyof$10,000 issuedto(40), youaregiven: Mortality follows the Illustrative Life Table with i = 6% Mortality is uniformly distributed between integral ages Calculate the benefit reserve at the end of 10 years for this insurance.
Ted Williams made deposits of $500 at the end of each year for eight years. The rate is 8% compounded annually. The value of Ted's annuity at the end of eight years is (use the tables in the handbook): Multiple Choice $4,318.30 None of these $5,318.30 $2,873.30 $2,837.03 acer
In buying a car worth P 1,500,000 cash, the purchaser pays P 500,000 cash and agrees to pay the balance including interest at 6.3 % compounded semi - annually, by a sequence of 8 equal semiannual payments of P 178,118.98, the first due at the end of x years. Find x. a. 4 b. 7 c. 3 d. 8
Using Table 19-1 and Table 19-2 find the following premiums for a 10-year term life insurance policy with a face value of $30,000 for a 28-year-old male. A. Annual premium B. Semiannual premium C. Quarterly premium D. Monthly premium Life Insurance—Premium FactorsPremium Paid Percent of Annual PremiumSemiannually 52%Quarterly 26%Monthly 9%
Find the annual premium for a 10-year level term insurance policy with a face value of $50,000 for a 35-year-old male using a non-tobacco rate. Use the given table. E Click the icon to view the data table Estimated annual premium = $(Type an integer or a decimal.)
Complete the following amortization chart by using Table 15.1. Note: Round your "Payment per $1,000" answer to 5 decimal places and other answers to the nearest cent. Selling price of home $ Down payment 75,000 $ Principal (loan) 4,000 $ 71,000.00 Rate of interest 5.5 % Years 30 Payment per $1,000 Monthly Martege Payment r
7. A net premium of $41 payable for life will provide (x) with either $5,000 n-year term insurance followed by $1,000 whole life insurance after age x + n, or $3,000 n-year term insurance followed by $2,000 whole life insurance after age x + n. What is 1000 · Px ? A) 17.37 B) 17.47 C) 17.57 D) 17.67 E) 17.77
Calculate the short-rate premium and refund of the following: (Use Table 20.4.) ****TABLE ATTACHED**** Annual premium Canceled after Short-rate premium Refund $360 4 months by insurance company

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