An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child atthe child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to theinsurance company:First birthday:Second birthday:Third birthday:Fourth birthday:Fifth birthday:Sixth birthday:After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $380,000.If the relevant interest rate is 11 percent for the first six years and 7 percent for all subsequent years, what is the value of the policy atthe child's 65th birthday?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.Child's 65th birthday$ 830$ 830$930$930$ 1,030$ 1,030

Interest rate for first 6 years11%Interest rate for all subsequent years7%First…

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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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Mrs. Garcia came to the Obstetrics Department of Monroe Health System pregnant and ready to deliver her first baby. She has health insurance coverage with United Healthcare provided by her employer. United has a contract with Monroe Health System, that gives United Healthcare a 20% discount from Monroe's full established rates. If Monroe Health System's rate for normal newborn delivery, including mother and baby, is $5,700, what is the amount of the contractual allowance that must be recorded related to the delivery of Mrs. Garcia's baby? A. $1,140.00 B.$1,410.00 C. $3,850.00 D.$4,560.00 E.$6,840.00
Martha incurred medical and dental expenses in 2020 for herself, her husband, Terry and her six year-old daughter, Sophia as follows: Medical/Dental Cost Net Income Martha $3,500 $132,000 Terry (spouse) 2,200 70,000 Sophia (child under 18) 800 According to the T1 Guide, either spouse can claim the medical expenses. Which spouse should claim the medical expense credit to receive the maximum amount? Type either Martha or Terry in the space provided. What is the maximum federal medical expense tax credit that can be claimed in 2020? Do not add commas or dollar signs to your answers. Round to the nearest whole number.
An Insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The purchaser (say, the parent) makes the following six payments to the insurance company First birthday: Second birthday Third birthday: Fourth birthday Fifth birthday: Sixth birthday. $ 800 $800 $ 900 $ 900 Future value $1,000 $ 1,000 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $350,000. The relevant interest rate is 10 percent for the first six years and 7 percent for all subsequent years. Calculate the future value of the payments at the child's 65th birthday. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Personal automobile policy coverage. Zachary Lee has a personal automobile policy [PAP] with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Zachary loses control and skids on ice, running into a parked car and causing $3,785 damage to the unoccupied vehicle and $2,350 damage to his own car. Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $30,000 each. Zachary’s 18-year old son borrows his car. He backs into a telephone pole and causes $450 damage to the car.
Isis quit her job at A Corp. While at A Corp., Isis was enrolled in their group health insurance plan. Now, Isis works for C Corp., which also has a group insurance plan. According to the Health Insurance Portability and Accountability Act, C Corp. must ______. a. pay A Corp. so that Isis can maintain her health insurance through A Corp b. wait to enroll Isis in C Corp.'s plan until she has been employed with the company for 1 year c. reimburse Isis for any out-of-pocket expenses she incurred while unemployed d. allow her to participate in the company group health insurance plan
A patient's total surgery charges are $1,278. The patient must pay the annual deductible of $1,000, and the policy states a 80-20 coinsurance. What does the patient owe?
What is the Schedule A deduction for interest expense? Paul paid interest to his lenders as follows: Primary home mortgage $7,200 Home-equity loan 435 (not acquisition debt) Credit cards 498 Car loan 390 Primary home mortgage Home-equity loan Credit cards Car loan
Child and Dependent Care Credit (LO 7.3) Marty and Jean are married and have 4-year-old twins. Jean is going to school full-time for 9 months of the year, and Marty earns $44,500. The twins are in day care so Jean can go to school while Marty is at work. The cost of day care is $9,100. TABLE 6.1 CHILD AND DEPENDENT CARE CREDIT PERCENTAGES Adjusted Gross Income Applicable Percentage Over But Not Over $0 – $15,000 35% 15,000 – 17,000 34% 17,000 – 19,000 33% 19,000 – 21,000 32% 21,000 – 23,000 31% 23,000 – 25,000 30% 25,000 – 27,000 29% 27,000 – 29,000 28% 29,000 – 31,000 27% 31,000 – 33,000 26% 33,000 – 35,000 25% 35,000 – 37,000 24% 37,000 – 39,000 23% 39,000 – 41,000 22% 41,000 – 43,000 21% 43,000 – No limit 20% What is their child and dependent care credit?$fill in the blank 1 Answer was wrong when i put $900 and also when put in 16000.
Dengar
114
A-7
Benjamin has the following dependents. child age 19 child age 15 mother age 67 How may of these dependents qualify for the $500 nonrefundable Credit for Other dependents in 2021?

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