Q10. For a special 20-year temporary life annuity-due payable monthly on (50), you are given:Mortality follows the Illustrative Life Table with i = 0.06.Deaths are uniformly distributed over each year of age.100 is payable at the beginning of each month from age 50 for 10 years.400 is payable at the beginning of each month from age 60 for 10 years.Calculate the expected present value of these annuity payments.

An annuity is a contract between you and an insurance company in which you pay a lump-sum payment or…

Answered: - Mortality follows the Illustrative…

- Mortality follows the Illustrative Life Table witl Deaths are uniformly distributed over each yea 100 is payable at the beginning of each month 400 is payable at the beginning of each month

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The individual is paid a whole life annuity-due of 10,000 per year, payable annually. Calculate the…

A: Perpetuity due is a form of annuity where the annuity amount is received for an infinite period and…

Q: A special fully continuous whole life insurance pays a benefit of 1000 plus a refund of all premiums…

A: Solution- Givenμ=0.01δ=0.05

Q: At age 22, someone sets up an IRA (individual retirement account) with an APR of 7%. At the end of…

A: the answer is given below

Q: A death benefit on a life insurance policy can be paid in one of the following three ways: (i) A…

A: Present value is the equivalent value of the future money based on the time value of money.

Q: Calculate the Medicare Levy payable for an individual resident earning $50,000 per annum. Select…

A: Medicare levy is an additional tax payable along with the tax you pay on your taxable income. It is…

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: At age 18, someone sets up an IRA (individual retirement account) with an APR of 4%. At the end…

A: Future value is the estimation of future cash value which is likely to be received in the future…

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: Raj deposits 25 into a fund at the end of each month for 2 years. The total amount of interest…

A: Solution- FV=PMT1+in-1iFV=2S1+i24-1i

Q: A pension scheme provides retirement benefits to a group of 200 pensioners currently aged 65 exact.…

A: The objective of the question is to calculate the mortality profit or loss for the pension scheme…

Q: For 22 years, Janet saved $250 at the beginning of every month in a fund that earned 4.25%…

A: The future value of the annuity due is the future worth of a cash flow series received or paid at…

Q: a) The following information: Monthly Cost of Insurance Monthly Expense Charge Percent of Policy…

A: Balance in account would depend on the expenses and interest accrued till the period.

Q: Thomas's retirement fund has an accumulated amount of $55,000. If it has been earning interest at…

A: Accumulated Value in retirement Account "FV" is $55,000 Interest rate is 2.44% Compounded monthly…

Q: NOTE: Provide a format and show your work (example: N = 6, PV = XXX, I = X%, etc.) 1. Sam decides…

A: Step 1 The current value of a future stream of payments from a business, project, or investment is…

Q: Problem 11-64 (LO 11-5) Terrance is age 72 and retired. Beginning in 2022, he must start taking…

A: The amount that owners and eligible retirement plan participants of retirement age are obliged to…

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: (i) commission is 10% of the first premium and 4% of each subsequent premium, (ii) other expenses…

A: What is Insurance? Insurance is a contract where the pooling of funds takes place. The individual or…

Q: A select life aged 40 purchases a 10-year endowment insurance with $100,000 sum insured. Premiums…

A: An 10 years endowment insurance pays the sum assured benefit to the nominee in case the insurer died…

Q: Your employer pays 70% of your total insurance premium of 8000 per year. How much do you pay as an…

A: Total insurance premium = $8000 Employer contribution = 0.70 (70%)

Q: Each week, $350 is placed into an annuity that earns 10% compounded weekly. Find the value of the…

A: An annuity is an arrangement in which a fixed sum of money is paid to an individual at regular time…

Q: Find the value of a retirement savings account with monthly contributions of $50 contributions made…

A: Future value is an estimate of future cash flows that may be received at a future date, discounted…

Q: Ten years ago, Valerie decided to start putting $50 into an account every week. If the account earns…

A: Given, Amount of deposit is $50 Rate is 3.45% compounded weekly Number of years is 10

Q: aloulate the amount of money deposited into an account as a perpetuity if it is used for $2300…

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: ealth Care Choices. You have a choice of two health insurance plans with the following terms. Assume…

A: Step 1 In cost management, the expense which has effective cost , in terms of same benefits , is to…

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: Saving Later Plan 2: Invest $350 at the end of each month into an account paying 7.5% compounded…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Find the present value of the following perpetuity. Made At: end Perpetuity Payment $3,000 Payment…

A: Present value of perpetuity refers to the present value of the equal cash flow for the infinite…

Q: 22. If a hospital received $15,000 in payments per year at the end of each year for the next six…

A: The Current value is the present value of a future amount i.e., it is the amount to be invested…

Q: Iman

A: A mortality table shows the death rate at any given age in terms of…

Q: At age 24, someone sets up an IRA (individual retirement account) with an APR of 5%. At the end of…

A: The future value concept can be used to derive the future value of a present sum or a stream of cash…

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: 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: A salesman earns P2,500 on the 1st month, P2,800 on the 2nd month, P3,100 on the 3rd month and so…

A: Since you have posted a multiple question then we will be solving the first question only as per the…

Q: osit $1700 into a retirement account earning 2.8% interest every quarter until I turn 58 by the way…

A: There is need to do planning for retirement and if done on time will results in good amount over the…

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: 3. The proceeds of a 10,000-death benefit are left on deposit with an insurance company for seve…

A: Monthly payment of accumulated value is treated as an annuity payment for a fixed period.

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: Find the final amount in this retirement account, in which the rate of return on the account and the…

A: We can calculate the retirement amount with the help of following formulae: =FV (RATE, NPER,PMT)…

Q: Kaileika's retirement plan consists of contributing $123 at the end of each month into an RRSP. If…

A: Future value of money is the amount of investment done and amount of interest accumulated over the…

Q: For 13 years, Janet saved $250 at the beginning of every month in a fund that earned 4.5% compounded…

A: Compounding is a method of charging interest in which Interest is charged on the amount including…

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: unit 6-3

A: To calculate the present value of a perpetuity, we use the following formula:PV of perpetuity = C /…

Q: The following table shows the average life expectancies in several countries. Assume that all…

A: Insurance premium refers to the periodic sum extended by the insured to the insurer. This is the…

Question

Q10. For a special 20-year temporary life annuity-due payable monthly on (50), you are given:
Mortality follows the Illustrative Life Table with i = 0.06.
Deaths are uniformly distributed over each year of age.
100 is payable at the beginning of each month from age 50 for 10 years.
400 is payable at the beginning of each month from age 60 for 10 years.
Calculate the expected present value of these annuity payments.

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Calculation

VIEW

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, accounting and related others by exploring similar questions and additional content below.

Similar questions

son.7
6. Choose the best retirement plan for the employee from among those presented below. interest is 12.00% pa compounded monthly. Select the correct response: P200,000 now plus P1.7 M after 2 years P100,000/month for 1 year plus P400,000 after one year P64,000/month for 2 years O P1.65M on the 18th month
K Calculate the total interest and principal portions for the series of monthly payments of $166.95 that occur during year 7, for an ordinary annuity of $13,500 with 8.5% interest compounded quarterly for 10 years. Round your answers to two decimal places. Principal Number Interest Number
Doc White gave you a rough "rule of thumb" for determining your life insurance needs, based on your annual salary Assume that Pete has an annual salary of $80,000. What is the rough range of life insurance coverage that Pete should have according to this rule? A. $400,000 to $800,000 OB. $400,000 to $480,000 OC. $160,000 to $480,000 OD. $160,000 to $800,000
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
A pension scheme provides retirement benefits to a group of 200 pensioners currently aged 65 exact. The scheme pays an annual income of £19,000 annually in arrears if the pensioner is alive. A lump sum of £50,000 is paid at the end of the year of death. During the first year 3 members died. (i) (ii) Basis: Calculate, showing all working, the mortality profit or loss for the year. Explain why the mortality profit or loss has arisen. Mortality: Interest: AM92 Ultimate 6% p.a. effective
Hi, can I have a solution for this one, please?
4. A select life aged 60 purchases a 10-year endowment insurance with $100,000 sum insured. Premiums are payable annually in advance and death benefits are payable at the end of the year of death. Assume that (i) commission is 10% of the first premium and 4% of cach subsequent premium, (ii) other expenses are $50 at issue, and $5 at each subsequent premium date, (iii) mortality follows the Standard Select Life Table, and (iv) interest is 5% per year. Calculate the annual premium.
Choose the best
Using Table 19-1 and Table 19-2 find the following premiums for a 10-year term life insurance policy with a face value of $30,000 for a 28-year-old male. A. Annual premium B. Semiannual premium C. Quarterly premium D. Monthly premium Life Insurance—Premium FactorsPremium Paid Percent of Annual PremiumSemiannually 52%Quarterly 26%Monthly 9%
UNIT 7-11
Employers put $300 toward a pension plan every month. If the account has an interest rate of 9%/a compounded monthly, how much will there be in each account in 15 years? $113521.73 $123521.73 $103521.73 $133521.73