An insurance company wishes to offer customers a monthly installment alternative to the annual premium plan. All premiums are payable at the beginning of the period of coverage. The monthly payment plan is to include an interest charge of 12% compounded monthly on the unpaid balance of the annual premium.What will be the monthly premium per $100 of annual premium?

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
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An insurance company wishes to offer customers a monthly installment alternative to the annual premium plan. All premiums are payable at the beginning of the
period of coverage. The monthly payment plan is to include an interest charge of 12% compounded monthly on the unpaid balance of the annual
premium.What will be the monthly premium per $100 of annual premium?
Transcribed Image Text:An insurance company wishes to offer customers a monthly installment alternative to the annual premium plan. All premiums are payable at the beginning of the period of coverage. The monthly payment plan is to include an interest charge of 12% compounded monthly on the unpaid balance of the annual premium.What will be the monthly premium per $100 of annual premium?
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