Ali purchased a $100,000 participating whole life policy. The annual premium is $2,000. Projected dividends for the first 20 years are $15,624. The cash value after 20 years will be $29,000. If the premiums were invested at 5 percent for 20 years. If the dividends were accumulated at 5 percent for 20 years, they would grow to be $25,600. (The future value interest annuity factor at 5% for 20 years equal 33.07).Based on this information, what is the surrender cost index per thousand per year of Ali's policy over the 20-year period? $20.27 $5.77 -$2.00 $2.64

Ali purchased a $100,000 participating whole life policy. The annual premium is $2,000. Projected dividends for the first 20 years are $15,624. The cash value after 20 years will be $29,000. If the premiums were invested at 5 percent for 20 years. If the dividends were accumulated at 5 percent for 20 years, they would grow to be $25,600. (The future value interest annuity factor at 5% for 20 years equal 33.07).Based on this information, what is the surrender cost index per thousand per year of Ali's policy over the 20-year period? $20.27 $5.77 -$2.00 $2.64

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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