An insurance firm agrees to pay you $3,310 at the end of 20 years if you pay a premium of $100 per year at the end of each of the 20 years. Find the internal rate of return to the nearest whole percentage point.

Q: A life insurance company will sell a 20 year annuity paying $1,600 at the end of each month for…

A: Solution:-When an equal amount is paid each period at end of period, it is known as ordinary…

Q: A life insurance co. is trying to sell you an investment policy that will pay you and your heirs…

A: Perpetuity refers to a financial concept where a stream of cash flows continues indefinitely. It is…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

Q: An investor decides to purchase a five-year annuity with an annual nominal interest rate of 12%%…

A: Present Value: Given a certain rate of return, It  is the current value of a future financial asset…

Q: A retirement plan offers to pay $20, 000 per year for 30 years andincrease the annual payment bytwo…

A: The money and resources that a person or family receives during their retirement years are referred…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: The present value of the annuity is the discounted worth that is defined as the process of…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: The objective of the question is to find the present value (PV) of an annuity account that is…

Q: ind the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: An insurance company offers a retirement annuity that pays 100,000 per year for 15 years, gorwing at…

A: An Annuity is a stream of regular periodic payments made or received for a specified period of time…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: An annuity is a financial term that depicts a series of cash flows at equal time intervals for a…

Q: Find the future value of an annuity of $1300 paid at the end of each year for 15 years, if interest…

A: Annuity is the payment of fixed amount at the end(ordinary) or beginning(due) of a financial period…

Q: What is the annual percentage rate ( APR) of the loan?

A: The annual percentage rate is an annual interest rate used to represent the cost of borrowing. It…

Q: Your pension plan is an annuity with a guaranteed return of 5.8% per year (compounded quarterly).…

A: To solve this problem, we need to break it down into two main parts:1. Accumulation Phase (Before…

Q: For $150,000, Continental Life Insurance Co. will sell a 20-year annuity paying $1200 at the end of…

A: An annuity is usually used in the retirement funds where fixed future amounts are paid in exchange…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: The present value concept is a discounted value concept that determines the value of future amounts…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: Annuity refers to a fixed and constant cash flow stream. In this case the monthly withdrawals of…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: Calculation of present value of annuity: Answer: Present value of annuity is $21,735.95

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Safe Insurance Company offers a 40-year annuity. The annuity pays $1,000/year at the end of each…

A: To calculate the present value of the annuity, we can use the formula: PV = C x ((1 - (1 + r)^-n) /…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given

A: Present Value of Annuity: It represents the present worth of the future annuity periodic payments…

Q: A company needs to buy an annuity package that will provide a future income to an individual over a…

A: Annuity amount, A1 = £4,421 Period, n1 = 13 years Interest rate per period, r1 = 4.0% The present…

Q: Use the following table to calculate the minimum premium an insurance company should charge for a…

A: A financial agreement or contract between an insurance company and a person or entity (the…

Q: An annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for…

A: Required :The discounted value of these cash flows.

Q: Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

A: Future value of ordinary annuity formula is: C is periodic deposits r is periodic interest rate n…

Q: •An insurance company offers to pay you $1,000 per year for 10 years if you will pay $6,710 up…

A: We can solve this using Present value of annuity formulaPresent value of annuity is =…

Q: Using the "Human Life Value" method, how much life insurance should you purchase if you have 45…

A: The objective of this question is to calculate the amount of life insurance one should purchase…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: GIVEN, A= $200 n=20 r=2%

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: The present value (PV) of an annuity is a financial concept that represents the current worth or…

Q: what is the value of the annuity today

A: We can determine the PV of annuity to year 3 and then discount it to year 0 using PV formula. r =…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: Present value of annuity is the value of an asset at time 0. Present value helps in making…

Q: A 6-year term insurance policy has an annual premium of $500, and at the end of 6 years, all…

A: In case of a term insurance policy we pay annual premiums.The premium is a stream of fixed and…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.