A yearly renewable term life insurance policy generally specifies thatA) The policy owner may renew the policy only onceB) Premiums shall increase every time the policy is renewedC) Evidence of insurability shall be required every renewalD) Cash values will increase for as long as the policy is in force

Insurance is a kind of financial instrument wherein an individual invests his funds into a policy to…

Answered: A yearly renewable term life insurance…

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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On January 1, 2025, a machine was purchased for $980,000 by Shamrock Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Pharoah Inc. for 3 years on January 1, 2025, with annual rent payments of $260,000 due at the beginning of each year, starting January 1, 2025. The machine is expected to have a residual value at the end of the lease term of $562,500, though this amount is unguaranteed. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much should Shamrock report as income before income tax on this lease for 2025? Income before income tax $
He also wants to know how the portion of the home payment that comprises interest changes over the years assuming he takes out an FRM.
For life insurance policies, some of the premium pays for the cost of the insurance, and the remainder goes toward the cash value of the policy and earns interest like a savings account. Consider the following insurance company options. Company 1: pays 4.2% compounded monthly on the cash value of their policies Company 2: pays 4.21% compounded semiannually on the cash value of their policies What is the APY offered by each company? (Round your answers to the nearest hundredth.) Company 1 % Company 2 %
9. Define out of pocket maximum. a. A flat-rate fee you must pay when receiving any kind of health care service. b. The maximum amount of money your insurance will cover of a certain health care service. c. The maximum amount you will have to pay out of pocket in one year for the benefits your insurance covers. d. The maximum amount of money the insured party will pay toward prescription medications.
Please help me
Which one of the following statements regarding annuities is NOT true? OA) A joint and full survivor annuity guarantees a level payment as long as either annuitant is alive OB) A single-premium variable deferred annuity generally permits additions to the invested amount once each year C) A flexible premium variable annuity generally limits changes in the investment mixto some extent. D) A life annuity with ten years certain and continuous will pay benefits for at least ten years if the annuitant dies six years after the initial distribution is made
A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle, whichever is longer. O True O False
With a deferred ordinary annuity, the first payment was made one or more periods prior. the first payment begins one or more periods later. the last payment is made first. the first payment is made last.
Find the expected net profit of an insurance company on a life-insurance policy whose death benefit is $1,000,000 if the annual premium for the policy is $2000 and the chance of the customer dying within the next year is 0.002. Interpret. (show work)
To calculate the withdrawal amount from an account in which you want to maintain a static balance, you use the __________________ formula. Group of answer choices Installment Payment Simple Interest Annuity Compound Interest
Who is the person who will receive lifetime payments from an annuity? OA) Administrator O B) Decedent OC) Executor OD) Annuitant

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