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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40. Jim has earned an average of $3,290 per month over his lifetime. He is planning to retire at 66, the full retirement age for his year of birth. Using the formula of calculating Social Security as 90% of earnings of the first $680 and 32% of earnings over $680. calculate Paul's monthly retirement benefit. A. $1,052.80 B. $2,961.00 C. $1,447.20 D. $3,655.56
Calculate the annual premium for the following policy. (Use Table 20.1.) (for females subtract 3 years from the table.) (Round your answer to the nearest cent.) **TABLE ATTACHED***** Amount of coverage (face value of policy) Age and sex of insured Type of insurance policy Annual premium $50,000 27 (F) 20-year endowment
In 2012 the maximum Social Security deposit by an individual was $8,386.75. Suppose you are 27 and make a deposit of this amount into an account at the end of each year. How much would you have (to the nearest dollar) when you retire if the account pays 2% compounded annually and you retire at age 65?_____$
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.
Hailey starts an IRA (Individual Retirement Account) at the age of 22 to save for retirement. Shedeposits $450 each month. The IRA has an average annual interest rate of 8% compounded monthly.How much money will she have saved when she retires at the age of 65? Round your answer to thenearest cent, if necessary.
Peg Gasperoni bought a $50,000 life insurance policy for $190 per year. Ryan Life Insurance Company sent her the following billing instructions along with a premium plan example: "Your insurance premium notice will be mailed to you in a few days. You may pay the entire premium in full without a finance charge or you may pay the premium in installments after a down payment and the balance in monthly installments of $50. The finance charge will be added to the unpaid balance. The finance charge is based on an annual percentage rate of 18%." If the total policy premium is: $190 290 390 And you put down: Finance Charge $50.00 70.00 95.00 The balance subject to finance charge will be: $140.00 220.00 295.00 $ 4.96 The total number of monthly installments ($30 minimum) will be: Peg feels that the finance charge of $4.35 is in error. a. What is the actual finance charge for the first three months? Note: Round your answer to the nearest cent. 3 5 6 The monthly installment before adding the…
Gert needs to borrow $415,000 to purchase a home. He is able to obtain a thirty year mortage with a fixed-rate of 3.0%. What is his monthly payment? For numerical entries, please 1. do NOT enter commas 2. do NOT enter the dollar symbol: $ 3. DO enter the percent symbol when it is needed: % 4. enter dollar amounts to the nearest cent, for example: 12345.67 Please complete the TVM Framework table to compute Gert's monthly payment on this mortgage: Time Value of Money (TVM) Framework i PV PMT с Please complete the first rows of the amortization table: Amortization Table INTEREST LA n n Principal Balance Excess Payment FV type CPT Principal Remaining If Gert started this mortgage at the beginning of December, how much interest would he pay during its first calendar year?
In 2012 the maximum Social Security deposit by an individual was $8,386.75. Suppose you are 29 and make a deposit of this amount into an account at the end of each year. How much would you have (to the nearest dollar) when you retire if the account pays 3% compounded annually and you retire at age 65?$
Suppose a life insurance company sells a $250,000 one-year term life insurance policy to a 24-year-old female for $360. The probability that the female survives the year is 0.999477. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to two decimal places as needed.) Which of the following interpretation of the expected value is correct? O A. The insurance company expects to make an average profit of $32.71 on every 24-year-old female it insures for 1 month. O B. The insurance company expects to make an average profit of $359.81 on every 24-year-old female it insures for 1 year. O C. The insurance company expects to make an average profit of $20.84 on every 24-year-old female it insures for 1 month. O D. The insurance company expects to make an average profit of $229.25 on every 24-year-old female it insures for 1 year.
You contribute $1,500 annually to a retirement account for seven years and stop making payments at the age of 45. Your twin brother (or sister . . . whichever applies) opens an account at age 45 and contributes $1,500 a year until retirement at age 65 (20 years). You both earn 9 percent on your investments. How much can each of you withdraw for 20 years (that is, ages 66 through 85) from the retirement accounts? Use Appendix A, Appendix C, and Appendix D to answer the question. Round your answers to the nearest dollar. You can withdraw $ Your twin can withdraw $ bongo O
A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 23.04 years and pool the money into a savings account that pays 3.09% APR. They plan on living for 28.39 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Yearly Contribution Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k Balance $24,614.86 $183,591.46 $306,050.80 $1,000.00 $10,000.00 $15,000.00 APR 6.06% 7.55% 5.06%
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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