determine the function which can be used to compute annual premiums.

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: old's Gym wants to offer its clients a monthly payment option on its annual membership dues of $490.…

A: Monthly payment refers to the equated monthly installment amount that will be discharged over the…

Q: An insurance firm agrees to pay you $5,131 at the end of 29 years if you pay premiums of $158 per…

A: Internal rate of return is the rate at which the present value of all cash inflows and outflows…

Q: What is the annual insurance expense considering the following costs: Semiannual car insurance…

A: Insurance is agreement between insurer and insured where insurer agrees to compensate insured for…

Q: Your child's orthodontist offers you two alternative payment plans. The first plan requires a S…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

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: Analyzing Footnote Disclosure of Pension Buy-out In a press release dated December 3, 2018, Bristol…

A: To determine the net funded status at December 31, 2019, we need to consider the impact of the…

Q: Assuming interest rates are at 6%, what is the fair value of this offer?

A: Fair value or present value can be calculated using the present value concept.  1. Find the value of…

Q: Gold Insurance Company intends to offer a contract with a guaranteed annuity in units of $500,…

A: The term "annuity" refers to insurance policies sold by financial organisations with the goal of…

Q: An insurance policy offers you a choice of $800 per month for 6 years or a lump-sum payment. What…

A: The lump-sum payment will be equal to the present value of this cash flow stream. This cash flow…

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: You have been awarded monthly payments of 2800 for 15 years as an insurance settlement ABC Finance…

A: Discount rate is the interest rate which is used to calculate the present value of future cashflows.

Q: Give typing answer with explanation and conclusion    With this type of cash value life insurance…

A: Cash value life insurance policies offer a unique blend of life insurance coverage and a savings or…

Q: A fully discrete life insurance policy is issued to (30). The death benefit is 1000 plus the benefit…

A: Given: The policy issued to the policy holder is denoted as x. The value of x=30

Q: Big Dom’s Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like…

A: APR = given monthly rate * 12 months

Q: Using the Simple Inteest equation, determine the lowest interest amount and the lowest monthly…

A: Offer A  Interest Rate = 7% Monthly Interest rate(rA) = 7%/12 =0.5833% Years  = 5 Terms(nA) = 5*12 =…

Q: An insurance company is offering quarterly payments of $720 for the next 25 years in exchange for a…

A: Calculate the rate of return per annum using Excel as follows:Formula sheet:Notes:To understand the…

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: You purchase a three-month discount security (e.g., a Treasury bill or commercial paper) for $0.9878…

A: Purchase price of 3-month discount security = $98780 Face Value = $100,000

Q: If the insurance plan where the insurance firm promises to make yearly payments of 200,000 pesos…

A: Annual payment = 200,000 pesos Interest rate = 6% Period from 11th year to 15th year = 5 Periods

Q: Suppose the lender of $2,000 uses add - on interest method (Rule 78 loan) and also charges 9%, what…

A: The objective of the question is to calculate the monthly payment and the total cost of a loan of…

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: Calculate the DTI ratio (as a percent) for a borrower who has a gross monthly income of $5,330 and…

A: DTI ratio compares a person's or a household's total debt payments to their gross income. This is…

Q: The discount rate on a T-Bill is always a simple annual interest rate, using the formula, D= PVrt…

A: Treasury bills are the debt instruments issued by the Government for a short period generally for…

Q: None

A: Calculate the quarterly compounded nominal rate of interest using Excel as follows:Formula…

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: A car dealer offers payments of S522.59 per month for 48 months on a S25, 000 car purchase (Assume a…

A: From the question, we can identify the following values:Monthly payment (PMT) = $522.59Number of…

Q: There is an insurance plan worth $4,000 , which will return $2,200  per year for the next two years…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: ABC Insurance offer term life insurance under the following terms: Guaranteed renewal Cover to age…

A: Why do the premiums increase as the age of the insured increases?           Life insurance is a…

Q: A dealer quotes a customer 7.35% to borrow for one year with interest paid monthly. The customer…

A: Here, The Interest Rate is 7.35% Compounding Period is Monthly Customer preference Compounding…

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: A borrower takes out a 5/1 Hybrid ARM for $450,000 with an initial contract interest rate of 3.5%.…

A: A mortgage with an adjustable rate has a variable interest rate based on the loan's outstanding…

Q: To insure you, Assurances Nochance Ltd offers the following plan: you will pay 20 annual payments of…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Using Table 19-1 and Table 19-2, calculate the annual, semiannual, quarterly, and monthly premiums…

A: Insurance are necessary for life because so that there should not be the problem for life who are…

Q: Find the installment price of a recliner bought on the installment plan with a down payment of $60…

A: Installment Price is the total amount of money that is paid during the loan period. It is calculated…

Q: Your child's orthodontist offers you two alternative payment plans. The first plan requires a $4,000…

A: The objective of the question is to find out the nominal annual interest rate built into the monthly…