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: 21. A nonprofit hospital reported the following final ending amounts in its financial statements for…

A: Non profit organization as the name suggest is run not for profit motive but the main objective is…

Q: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine…

A: Solution:- Calculation of post retirement benefit expenses as follows under:- Workings:- Interest…

Q: Calculate the Social Security and Medicare deduction for the following employee (assume a tax rate…

Q: Dc) 110.91

A: A terminal reserve is the leftover reserve of an insurance organization at the end of the policy…

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: ale posits 4 700 at the end of mary Every quarter for 5 yours aud 6 Months u a cnd 6 retiremment…

A: An annuity is a series of payments that are made at equal intervals. They are classified by the…

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: USE 4 DECIMAL PLACES (rounded)- i.e., 1.2345% or .6789- for intermediate calculations and round your…

A: Annuity is the number of payments which are equal in size and made at equal interval of time. Person…

Q: Peter's salary (X) is twice the salary of Paul (Y) but half the salary of Mary (Z). Write an…

A: In the given question, average of salary of Paul and Mary is to be calculated in term of salary of…

Q: Find the final amount (rounded to the nearest dollar) in this retirement account, in which the rate…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Evaluate, on the basis of ELT12 Males mortality and 4% per annum interest, he following: (i)…

A: interest rate =4% per annum Present value of expected benefits of £2000 to be received after 3…

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: eposits of 100 are made to an account today and one year from today. The annual force of interest at…

A: Force of interest is interest compounding continuously and is the highest form of the compounding.

Q: The following data are available pertaining to Household Appliance Company's retiree health care…

A: Calculation of the given requirements:Formulas for the above table are given below:

Q: Calculating Social Security and Medicare Taxes Assume a Social Security tax rate of 6.2% is applied…

Q: Marwa, aged 35, female, purchased an insurance policy from Oman United Insurance with a face value…

A: Marwa aged 35 female purchased insurance policy of RO 22,000 RAte used as per the table = 1.76

Q: 7) CALCULATE LIFE INSURANCE COVERAGE IN THE AMOUNT OF THE PREMIUM IS $0.22 PER $1000 PER MONTH…

A: First, we need to calculate the insurance coverage for each individual. This is done by multiplying…

Q: A good health insurance plan should: Multiple Choice O impose no unreasonable exclusions. provide at…

A: The answer is given below

Q: Martha receives $100 on the first of each month. Stewart receives $100 on the last day of each…

A: In finance, the concept of the time value of money is crucial, emphasizing that the value of money…

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 equated date at which the original payments are equivalent to the single payment. State…

A: The objective of the question is to find the time at which the original payments are equivalent to…

Q: Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.…

A: Present value=Future value / [ 1 + (Interest rate x Number of years)]

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: Description Debit Credit . 31: The pension cost for the year was $190,400, of which $139,700 was…

A: Journal entry: Journal entry is a set of economic events which can be measured in financial terms.…

Q: Instructions At the beginning of the current year, Willow Company adopts a pension plan and awards…

A: Defined Benefit Pension Plan - A defined benefit pension plan is one in which the employer…

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: Harrington Hospital provides you with the following information that relates to its financial…

A: Income statement:An income statement stands for the statement that shows profits and loss of the…

Q: X-RAY EQUIPMENT Newburgh Vet will need a new x-ray machine in 3 years. The own- ers decide to set up…

A: Sinking fund is a kind of separate account which is set up for a specific purpose. The fund…

Q: 7) CALCULATE LIFE INSURANCE COVERAGE IN THE AMOUNT OF THE PREMIUM IS $0.22 PER $1000 PER MONTH…

A: First, we need to calculate the life insurance coverage for each person. This is done by multiplying…

Q: What should be the balance in a Registered Retirement Income Fund (RRIF) that w rovide $2,500 at the…

A: More is the compounding of interest more is the interest being accumulated over the period of time…

Q: Allison pays $27,506.28 for an annuity due today. This annuity will pay her $1,750 at the beginning…

A: Annuity Due Beginning of each annuity amounts Payment = 27506.28 Annuity Amount = 1750 Interest…

Q: Your client has a child at McNeese that is a full time student. Your client claims this child as a…

A: Answer:- Child tax credit:- Different nations offer parents with dependent children a tax advantage…

Q: tudent deposits $400 at the end of every 3-months for five years int count that earns interest at j4…

A: in this you have to find out future value FACTOR and from that we have to calculate Value of X by…

Q: What is the accumulated sum of the following Stream of Payments? $20,384 every year at the beginning…

A: Given Information: Payment made every year=$20,384 Number of years for which payment is made=6…

Q: A Father leaves a logacy of K^(10),700. to his son. After death duties of 8% have been pard, the…

A: TO CALCULATE THE TOTAL AMOUNT THE SONWE WILL APPLY FORMULA FOR COMPOUND INTERESTCOMPOUND INTEREST…

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: FIT, social security, Medicare, and Net pay

A: Given in the question: Tax Status = Single Gross earnings of a week = 900 Medicare Tax Rate = 1.45%…

Q: Given the following, calculate the excess of revenues over expenses for the year. Total…

A: Net patient service revenue =Gross-deduction Net patient service revenue = $10,300-$1,100 Net…

Q: The following data are available pertaining to Household Appliance Company's retiree health care…

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

Q: What is the accumulated sum of the following Stream of Payments? $20,384 every year at the beginning…

A: Future value Future value is the worth of any asset or any sum of money at a future date when such…

Q: Lender Company provides postretirement health care benefits to employees who provide at least 10…

A: Post-retirement expenses are the cost of a pension that is visible for the time period. Costs for…

Q: The following data are for Guava Company's retiree health care plan for the current calendar year.…

A: Service costService cost refers to the required amount the employer must set aside each year to…

Q: Use the Defined Benefit Excel spreadsheet reviewed in class to answer this question. What is a…

A: Retirement: Retirement is the scenario when an employed person attained the defined age of…

Q: Please do not give solution in image format thanku

A: The concept of time value of money will be used. As the savings are made at the beginning of each…

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…

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

i need the answer quickly
The following represents the aging of contributions receivable for McKenzie Health Foundation for the historical years ended June 30, 2020, 2019, 2018, 2017, 2016, and 2015. Contributions receivable vary significantly by year; however, contribution revenue has been fairly stable over the five-year period. Fiscal Year-End 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Total contributions receivable $1,003,900 $1,225,650 $913,550 $1,907,700 $625,800 $483,750 Allowance for uncollectible contributions 31,689 40,100 29,327 68,870 21,903 19,530 Total contribution revenue 20,066,850 20,960,895 19,094,525 21,011,340 20,879,860 20,571,300 Aging of contributions receivable 0–30 days $546,000 $394,800 $457,800 $1,547,700 $625,800 $456,750 31–60 days 23,400 383,400 261,000 360,000 0 27,000 61–90 days 389,500 447,450 194,750 0 0 0 >90 days 45,000 0 0 0 0 0 $1,003,900 $1,225,650 $913,550 $1,907,700 $625,800 $483,750 a) Prepare a report…
chennai geleives 102 500 yor. Zakania Staying at pig .as basic Salary emplayément y 1500 P.M as DA providad terms and 4%. Commissi'on on -larnover achived by him. He B pald as HRA Oi The larnover autieved by him fo 15 lakhs. louse rent paid by Salany 1800 PiM the year Is bim is Q 500 p.N tle gecer'ved advan ee 9 delating -1o Apoil t olodd Deteamine lorakle HRA 50000. in yarch 20dd Jally
Calculate the total earnings under Rowan Plan from the following information Time taken =6 hours, time Rate =OMR 10 per hour, Time Allowed =8 hours
Choose the best
Shelly’s variable annuity has a mortality and expense risk charge at an annual rate of 2.25 percent of account value. Her account value during the year is $90,000. What was Shelly’s mortality and expense risk charge for the year?
Expenditure incurred annually on renewal of patient is a ?
Tina Parker, a single mother, is 20 years old. She has called on you for an insurance consultation. Her objective is to purchase life insurance protection for the next 10 years while her children are growing up. Tina tells you that she can afford about $350 per year for insurance premiums. You have suggested either a 10-year term policy or a whole life policy. (a) Using Table 19-1, rounded to the nearest thousand, how much insurance coverage (in $) can Tina purchase under each policy? Hint: Divide her annual premium allowance by the rate per $1,000 for each policy. 10-year term policy $ whole life policy (b) If she should die in the next 10 years, how much more (in $) will her children receive under the term insurance? $
Find the APR in each of the following cases: (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Number of Times APR EAR Compounded % Semiannually 10.5 % Monthly 11.4 Weekly 9.1 Infinite 12.8 ( Prev 3 of 10 Next
3. Your client has a 2-year old child whose college education they plan to fund when the child turns 18 in EXACTLY 16 years They plan to accumulate a lump sum by the first day of school to pay their child $2,000 a month BEGINNING the first day of school for the next 4 years (48 monthly payments). How much must your client invest EACH MONTH starting TODAY at the BEGINNING of each month in the mutual fund portfolio you recommend with a 7% expected return? STEP 1: Calculate the lump sum your child will need at the start of the their FIRST semester that will provide them with a $25,000 payment at the beginning of each semester. PV I/Y PMT FV
Market wages Home production Expenses (net of added income) Debt/funeral costs Spouse A $1,090,655 $870,655 $1,044,786 $348,262 O $428,957.20 80,000/year 12,000/year 50,000/year 220,000 Spouse B 20,000/year 40,000/year 50,000/year 220,000 How much life insurance should be purchased for Spouse B if using the expense approach, assuming 25 years and 3% rate? Please select the number closest to your answer
11. The net premium for a 10,000 whole life insurance policy issued to (40) is 4,000. At the end of 10 years, the benefit reserve on a 50,000 whole life insurance policy issued to (30) is 7,000. The net single premium for a 10,000 whole life insurance policy issued to (30) is P. Determine P.