AXA Insurance company sells life insurance policies for 5 years for 25 yearold man. The amount payable if the death occurs is 69000. The companyactuary has calculated that the probability of death for 23-year old man overthe next 8 years as the table below. Calculate the Net Single Premium forTerm Insurance if the required return on insurance company is 5.05 %AgeNumber of livingNumber of DeathDeath RateSurvi23125000055002467002588002699002711000281200029130003014000Select one:O a. NONEO b. 35000O c. 37170.66d. 35306.35e. 37000.15

Present value refers to the current value of expected income in the future at a given discounted…

Answered: AXA Insurance company sells life…

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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A family takes a $275,000 20 year mortage at 3.50% annually compounded monthly. a. Compute their monthly payments. o. Immediately after the 121st payment, this family receives a $55,000 from an inheritance. They decide to put this entire amount against the amount they owe. Given that the bank expects them to maintain the same monthly payments as in 4a, compute the length of time (months) it will take to pay the laon off. The same family above realizes that the inheritance income will not materialize (so they are back to 4a). Instead, immediately after their 121st payment they decide to re- fianance at the lower rate of 15% per year compounded monthly. They decide to stick with the same number of remaing monthly payments. What will be their new monthly payment? please draw the cash flow diagrams, and show all calculations!!!!
Subject: accounting
A medical doctor, 48 years old, is enrolled in a pension fund that will pay he $6,000 monthly at retirement age 60. This fixed monthly pension payout will be for a period of 25 years. The doctor requires a 6%)annual return on her investments. The present value of this annuity today is closest to: A- $462798 B. $469.858 C- $945447
A policyholder wishes to receive $5,000 per month in retirement. They plan to retire at the age of 64, the insurer is guaranteeing a 4% rate of return, and their life expectancy is 86. If they deposit each of the following amounts annually before retiring, at what age do they need to start saving? (A).$10,000 25 years old (technically, 25.60759 years old) (B).$15,000 33 years old (technically, 33.26361 years old) (C).$20,000 38 years old (technically, 38.17201 years old) (D).$25,000 41 years old (technically, 41.64589 years old)
A whole life contract provides for a benefit of 1000 at the moment of death. The policyholder pays a premium of 20 at the beginning of each year for the contract.The assumed interest rate is 0.05. The policyholder dies at the end of 25.8 years. Calculate the future loss at issue.
Bros I want to retire in 20 years she deposits 1200 monthly into a retirement account earning 4.5% interest. What is the formula that I need you to determine her account balance at the time of retirement
4. Consider a 20-year term insurance issued to a select life aged 40 by a single premium, with sum insured $500,000 payable immediately on death. Assume mortality follows the Standard Select Life Table, with UDD between integer ages, and assume an interest rate of 5% per year. Calculate the net single premium.
5. Determine the lump-sum amount needed to generate a retirement income of $30,000 per year for 20 years, assuming interest at 5% per year, compounded annually. 6. A furniture retailer offers a payment plan at 8.8% annual interest, compounded monthly. Customers can pay for a living room set by monthly payments of $288.15 for 2 years. a) Determine the total payments made by the customer to pay off the living room cot ))
The 40-year-old makes a contract by paying the 6500 TL he has to the insurance company. If the evaluation is made with 3% interest rate, how much can the person receive when he reaches the age of 70?
Ally estimates that a couple retiring this year will need $275,000 for healthcare costs. Assuming healthcare costs increase by 6% per year, what will a couple who will retire in 12 years need for healthcare costs? A) 553,354 B) 492,483 C) 586,555 D) None of the above
The proceeds of $493000 death benefit are left on deposit with an insurance company for 10 years at an annual effective interest rate of 18.04 %. The balance at the end of 10 years is paid to the beneficiary in 125 equal monthly payments of X, with the first payment made at the end of 10 month from the end of deposit. During the payout period, interest is credited at an annual effective interest rate of 12.89 %. Calculate X. Answer: 41544.44
A young couple buying their first home borrow $90,000 for 30 years at 7.4%, compounded monthly, and make payments of $623.14. After 4 years, they are able to make a one-time payment of $2,000 along with their 48th payment. (a) Find the unpaid balance immediately after they pay the extra $2,000 and their 48th payment. (Round your answer to the nearest cent.) (b) How many regular payments of $623.14 will amortize the unpaid balance from part (a)? Give the answer to one decimal point. (c) How much will the remaining debt be after the number of full payment periods in part (b) is made? (Round your answer to the nearest cent.) (d) How much will the couple pay over the life of the loan by paying the extra $2,000? (Round your answer to the nearest cent.) (e) How much will the couple save over the life of the loan by paying the extra $2,000? (Use your answer from part (b). Round your answer to the nearest cent.)

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