Answered: Calculate the annual premium for a 20…

Business

Finance

Calculate the annual premium for a 20 year old male seeking 5 year term insurance valued at $120,000.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

See similar textbooks

Related questions

Q: Marwan, aged 30, male, purchased an insurance policy from National Life Insurance with a face value…

A: Following is the answer to the given question

Q: Your employer offers a 401(k) plan with a 25% match, and you set a goal of retiring in 25 years with…

Q: Mr. Kamal is one the insured in Al-Ahlia Insurance Company having a policy of 10-year fixed rate…

A: Insurance can be defined as the arrangement being made by the individual or the company against the…

Q: you are 47 and have a 270,000 face amount 13-year limited payment participating policy. Your annual…

A: Face amount = 270,000Number of years = 13 yearsAnnual premium = 945Cash value = 10,813Annual yield =…

Q: Marwan, aged 30, male, purchased an insurance policy from National Life Insurance with a face value…

A: Following is the answer to the givem question

Q: A retired couple plans to supplement their retirement income with monthly withdrawals of the…

A: Retirement Income - It the amount deducted from the employee's current salary and to park in such…

Q: Peg Gasperoni bought a $50,000 life insurance policy for $300 per year. Ryan Life Insurance Company…

A: A finance charge is referred to as any cost that is related to the borrowing of funds, paying off…

Q: Calculate the annual, semiannual, quarterly, and monthly premium for the following fe insurance…

A: The insurance premium are given in the table of insurance policy table given by the insurance board…

Q: A newborn's future university tuition costs are estimated at $50,000/year for four years, with the…

A: Annuity is the series of equal cash payments over the period.

Q: Determining the Cost of Insurance. Suppose you are 45 and have a $50,000 face amount, 15-year,…

A: Face Value = $50,000 Annual Premium = $1,000 Cash value of the policy = $12,000 Time period = 15…

Q: A 40-year-old individual will be paid 100 TL in the first year at the beginning of the term and 50…

A: The payment system for any investment plan or project can be different. The individual can use the…

Q: AXA Insurance company sells life insurance policies for 5 years for 25 year old man. The amount…

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

Q: if you are 18 years old, deposit $5000 each year into a traditional IRA for 52 years, at 6% interest…

A: Annuity, A = $ 5,000Interest rate per year, R = 6%Period, N = 52 years

Q: 1) A father is investing 1000 t, every 6 months into a life insurance company for his son. According…

A: Future value of annuity is refers as a total value of recurring or periodic payments is worth in…

Q: A 20-year endowment insurance for a 30-year old pays $80,000 at the moment of death or at age 50,…

A: The value of an anticipated revenue stream calculated as of the date of valuation is known as…

Q: A woman, with her employer's matching program, contribute $700 at the end of each month to her…

A: Monthly withdrawal refers to the amount that is withdrawn from the bank on the respective date of…

Q: Calculate the monthly payment for a $330,000 home. The new owner has made a $70,000 down payment and…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

Q: When Jasmine retires she has $950,000 in a retirement account that earns 6% annual interest,…

A: Using PMT function in excel

Q: 30 1.87 1,56 30 8.8

A: In insurance table premium rates are given per 1000 so see table and get appropriate annual premium.

Q: Tommy Cook is 19 years old and is interested in purchasing a whole life insurance policy with a face…

A: Since you have posted a question having multiple sub-parts. All sub-parts are solved for you below.

Q: How many dollars would be the retirement pension if the person at the age of 65 wants to change…

A: Retirement planning is about forming plans in order to accomplish retirement expenses and retirement…

Q: Calculate the annual premium for the following policy. (Use Table 20.1.) (for females subtract 3…

A: Each and every individual should have a life insurance policy. It helps to provide financial…

Q: A retired couple plans to supplement their Social Security with interest earned by a $210,000…

A: Compound interest is a method of accumulating interest in which the amount earned in a period is…

Q: A retired couple plans to supplement their retirement income with monthly withdrawals of the…

A: In this question, the retired couple plans their income if they have a balance of 200000 in the…

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: Consider a 25-year term insurance issued to a life aged 35 with annual premiums payable throughout…

A: Given information,time period: yearsRate: Future value: To calculate,annual premium

Q: Calculate the level annual premium for this insurance.

A: Insurance can be defined as the sum kept aside for future safety and to indemnify future losses.…

Q: Jane Evans receives payments of $900 at the beginning of each month from a pension fund of $72,500.…

A: We will apply the annuity formula to find the number of payments and the size of final payment.

Q: choose three major insurance companies, obtain the premiums of life insurance policies for a 30 year…

A: For comparing premiums of life insurance policies in Canada for a 30- year-old man with a $300,000…

Q: Semiannually Quarterly Monthly Premiu 52% 26% 9%

A: The life insurance is quite necessary for life but depending on the age and income the amount of…

Q: To accumulate $100,000 for your child's 18th birthday, you need to invest a certain amount annually,…

A: An annuity is a financial product that provides a series of regular payments to an individual over a…

Q: Beth purchased a $50,000 nonparticipating whole life insurance policy. The annual premium was…

A: An individual or corporation (the insured) and an insurance firm (the insurer) enter into a contract…

Q: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish…

A: Retirement account interest = 7% Period of retirement account = 30 years Annual coupon = 6% Annuity…

Q: Abeer, aged 30, female, purchased an insurance policy from National Life Insurance with a face value…

A: Given, Female Age = 30 Annual Premium Factor from table = 1.56 So, Annual premium for 26000 RO =…

Q: If a life insurance company insures 50 females age 25 for $40,000, 10- year term policies, how much…

A: The annuity payment formula is used to calculate the periodic payment on an annuity. An annuity is a…

Q: Assume that a pension plan offers to pay $500,000 on a person's retirement (his/her sixty-fifth…

A: Annuity: It is a payment made in series at equal intervals.

Q: Peg Gasperoni bought a $50,000 life insurance policy for $340 per year. Ryan Life Insurance Company…

A: A finance charge is referred to as any cost that is related to the borrowing of funds, paying off…

Q: How much should annual premium payments be based on 3% annual interest and 1958 CSO mortality?

A: Based on the 1958 CSO mortality, life expectancy of a person (male or female) on average is 74…

Q: A medical doctor, 48 years old, is enrolled in a pension fund that will pay he $6,000 monthly at…

A: The Present Value refers to the discounted value of all future cash flows. All future cash flows are…

Q: A policyholder wishes to receive $5,000 per month in retirement. They plan to retire at the age of…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…

Q: Aisha, aged 25 years, female, purchased an insurance policy from Dhofar Insurance with a face value…

A: Annual Premium = Applicable Premium Rate x Face Value

Q: TABLE 20-1 Flve-year Stralght Twenty- Twenty-year Age term Age life Age payment life Age endowment…

Concept explainers

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.

Question

Calculate the annual premium for a 20 year old male seeking 5 year term insurance valued at $120,000.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

If a life insurance company insures 50 females age 25 for $40,000, 10- year term policies, how much would they expect to pay out?Solve
Tommy Cook is 19 years old and is interested in purchasing a whole life insurance policy with a face value of $80,000. a. Calculate the annual insurance premium for this policy. Note: Refer to the tables in the text for input data. Face value= Number of $1,000 = Rate per $1,000 = (whole life insurance, male -19) Annual premium = b. Calculate the monthly insurance premiums. Monthly percent Monthly premium = c. How much more will Tommy pay per year if he chooses monthly payments? Total of monthly payments = If paid monthly = More will be paid
TABLE 20.1 Life insurance rates for males (for females, subtract 3 years from the age. Non-binary individuals currently need to apply as male or female.)² Five-year term Straight life Twenty-year endowment 1.85 5.90 13.85 1.85 6.13 14.35 1.85 6.35 14.92 1.85 6.60 15.54 1.85 6.85 16.05 1.85 7.13 17.55 1.85 7.43 17.66 1.86 7.75 18.33 1.86 8.08 19.12 1.87 8.46 20.00 1.87 8.85 20.90 1.87 9.27 21.88 1.88 9.71 22.89 1.95 10.20 23.98 2.08 10.71 25.13 2.23 11.26 26.35 2.44 11.84 27.64 2.67 12.46 28.97 2.95 13.12 30.38 3.24 13.81 31.84 3.52 14.54 33.36 3.79 15.30 34.94 4.04 36.59 16.11 16.96 4.26 38.29 4.50 17.86 40.09 Age 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Age 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Age 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Twenty- payment life 8.28 8.61 8.91 9.23 9.56 9.91 10.29 10.70 11.12 11.58 12.05 12.57 13.10 13.67 14.28 14.92 15.60 16.30 17.04 17.81 18.61 19.44…
You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $1,400 a month for 20 years. You can earn 6 percent on your money. Which option should you take and why?
You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $400,000 today or receive payments of $16,000 a year for 15 years. You can earn 6 percent on your money. Which option should you take and why?
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)
You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $50,000 today or receive payments of $641 a month for 10 years. You can earn 6.50% on your money. What option should you take and why?
Sue purchased a $33 comma 00033, 000 life insurance policy at the price of $2424 per $1000 of coverage. If she pays the premium in 12 monthly installments, how much is each installment?
Kenji wants to buy a $150,000 term life insurance policy. He is 30 years old. Using the premium table, what is his annual premium for a 5-year policy?
Darlene wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10-year policy? a $100 b. $108 C$1.202 d. $1.290
Marwan, aged 30, male, purchased an insurance policy from National Life Insurance with a face value of 15,000 RO. The annual premium for five year fixed rate policy is: Rate table Five year Fixed rate Straight Life Age Male Female Age Male Female 20 1.57 1.27 20 5.90 4.24 25 1.65 1.33 25 7.13 6.35 30 1.87 1.56 30 8.85 7.75 35 2.23 1.76 35 11.26 9.71 40 3.52 2.44 40 14.54 12.46 O a. RO 132.75 O b. RO 116.25 c. RO 28.05 O d. RO 23.4 The fixed expenses of manufacturing Samsung Television is RO 200. The cost of raw materials is 20 per unit flabour ic PO 12 and the cort of ouorboadr ic RO 2 per unit If Samsung makes 20 Television, find the
Marwan, aged 30, male, purchased an insurance policy from National Life Insurance with a face value of 15,000 RO. The annual premium for five year fixed rate policy is: Rate table Five year Fixed rate Straight Life Age Male Female Age Male Female 20 1.57 1.27 20 5.90 4.24 25 1.65 1.33 25 7.13 6.35 30 1.87 1.56 30 8.85 7.75 35 2.23 1.76 35 11.26 9.71 40 3.52 2.44 40 14.54 12.46 O a. RO 132.75 O b. RO 116.25 O c. RO 28.05 O d. RO 23.4