**TABLE 20.1**This table presents life insurance rates for males. To adjust for females, subtract 3 years from the age category. Currently, non-binary individuals are required to apply as either male or female.### Key Information:- **Age Categories**: Listed from 20 to 44 years.- **Insurance Types and Rates**: - **Five-year Term**: Rates range from $1.85 at age 20 to $4.50 at age 44. - **Straight Life**: Rates start at $5.90 at age 20, increasing to $17.86 by age 44. - **Twenty-payment Life**: Begins at $8.28 at age 20, rising to $22.15 by age 44. - **Twenty-year Endowment**: Starts at $13.85 at age 20 and reaches $40.09 by age 44.- **Note**: These tables display premium rates for specific age groups and insurance options, applicable to individuals under age 45.Insurance rates generally increase with age across all categories, reflecting typical practice in determining life insurance premiums. Calculate the annual premium for the following policy. (Use Table 20.1) (for females subtract 3 years from the table.)**Note: Round your answer to the nearest cent.**| Amount of coverage (face value of policy) | Age and sex of insured | Type of insurance policy | Annual premium ||-------------------------------------------|------------------------|--------------------------|----------------|| $54,000 | 42 M | 5-year term | |The table provides details necessary to calculate the annual premium for an insurance policy. The table includes columns for the amount of coverage, the age and sex of the insured individual, the type of insurance policy, and the annual premium. The specific case involves a male aged 42 seeking a 5-year term policy with a coverage amount of $54,000. The exact annual premium is to be calculated using an external Table 20.1, and the answer should be rounded to the nearest cent.

Insurance is an absolute necessity in life. It helps an individual to cover risks of unknown and uncertainties that one may face in life in future.This is a 5 year term policy for a 42 year old male. From the table we can see that the figures for the 5 year term policy is given in the second column. The value corresponding to a 42 year old male is 4.04. This is the premium cost per $1000 of coverage. Hence: annual premium = amount of coverage/$1000 * value as per table 20.1= $54,000/$1,000*4.04= $54*4.04= $218.16Thus the answer is $218.16

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Calculate the annual premium for the following policy. (Use Table 20.1.) (for females subtract 3 years from the table.) Note: Round your answer to the nearest cent. Amount of coverage (face value of policy) 54,000 $ Age and sex of insured 42 M Type of insurance policy 5-year term Annual premium

Calculate the annual premium for the following policy. (Use Table 20.1.) (for females subtract 3 years from the table.) Note: Round your answer to the nearest cent. Amount of coverage (face value of policy) 54,000 $ Age and sex of insured 42 M Type of insurance policy 5-year term 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

Section: Chapter Questions

Problem 1PS

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At your favorite annuity store. Annuities-R-Us, you see a security that offers 46 equal payments, with the first payment of $600 occurring today, and all other payments of $600 paid in succeeding 7-month intervals: payments will therefore be at months 0, 7, 14, 21 ... 294, 301, 308, and 315. You determine that the correct discount/compounding rate is a nominal annual rate of 5.0 percent, with monthly compounding. Given this information, determine the value of this annuity at Month 315. O $57,184 O $74.982 O $48,877 $67,259 O $39.014
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