Question 11 Consider a policy with a R10 000 deductible and a recapture factor of 5%. Determine the amount of the deductible the insured would pay for a loss of R45 000. 1  R 8 250 2  R 2 250 3  R36 750 4  R10 000

Q: Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 2 3 4 5 6 7 8 9 10…

A: The NPV of a project refers to its profitability measured by discounting its cash flows to the…

Q: On September 1, 2021, Speedy Lube signed a 30-year, $1,080,000 mortgage note payable to Jonstown…

A: The loan amortization table refers to the table used to calculate the principal portion and interest…

Q: Question 8 How much is the proceeds if Mark borrows Php22,735 at 2.85% for 2 years and 5 months? 8…

A: Borrowed amount (PV) = Php 22,735 Interest rate (r) = 2.85% Period (n) = 2.416666666667 Years

Q: If you put up $42,000 today in exchange for a 9.6 percent, 9-year annuity, what will the annual cash…

A: Annual cash flow is calculated using following equation Annual cash flow = PV×r(1-1(1+r)n) Where, PV…

Q: Question An amount of $14951 is deposited into a fund that earns a nominal annual rate of interest…

A: Future value refers to the compounded value of all cash flows till the maturity at a given interest…

Q: Complete the first month of the amortization schedule for a fixed-rate mortgage. Mortgage: $88,000…

A: A mortgage refers to a covered loan that is borrowed to purchase or maintain a property with the…

Q: EXERCISE 10.6 Use of an Amortization Table LO10-4 Glen Pool Club, Inc., has an installment loan…

A: Loan Outstanding =$ 150,000 Interest rate = 6% p.a  Monthly Interest = 0.5%    Annual Installment =$…

Q: 1. The amount of R11 500 000 discounted over three years at an interest rate (discount rate) of 10%…

A: 1.) Discounting rate = 10% Amount = 11500000 Discounted amount= 11500000/(1.10)^3…

Q: Ferred variable annuity except:

A: Deferred  annuity  is most popular variable annuity. first time variable annuity introduce in year…

Q: A perpetuity paying 1 at the beginning of each 6-month period has a present value of 95. A second…

A: Given, The PV of perpetuity 6 month period is 95 Another perpetuity pays X.

Q: Use the amortization table to determine how much of the 10th payment is interest. The interest…

A: The repayment of a loan or mortgage over time is depicted in a table called an amortization…

Q: If Php10,568 is th Php13,500 is discounted discount rate?

A: Discount - A discount is a reduction in price or a percentage taken off of the item's real selling…

Q: Question 14 Which of the following is the most advantageous for a debtor if he borrowed P15, 000 at…

A: We know, exact interest is calculated by taking exact number of days in a year [i.e. 365 or 366 in…

Q: Appendix EX 14-19 Present value of an annuity On January 1, you win $60,000,000 in the state…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Larry invested $12,000 at an interest rate of 10.18% for 4 years. If the amortization schedule needs…

A: Interest is the cost payable for using the amount taken as a loan.

Q: [CLO-5] Determine the value of X for these two investment alternatives to be equivalent at an…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: of loss Payment $million 25% $5 50% $15

A: The number of entities in the portfolio, their credit ratings, the notional amount and recovery of…

Q: A borrower procures a package of 3 loans to finance an acquisition. Loan A: 150,000 30-years 6% Loan…

A: Effective interest rate can be computed by average rate of all the rates of loans after giving…

Q: Question 4.11 (i) David can receive one of the following two payment streams: 100 at time 0, 200 at…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A student wants save for college which begins in five years.  How much will the student save…

A: Solution:- When an equal amount is deposited each period at beginning of the period, it is called…

Q: Problem 5-11 Present Value of an Annuity Due (LG5-E If the present value of an ordinary, 7-year…

A: Present value refers to the discounted and current date value of the cash flow. Annuity due means…

Q: Net present value-unequal lives Project 1 requires an original investment of $50,100. The project…

A: Net present value :— It is the difference between the present value of all cash inflows and the…

Q: Consider a policy with a R5000 straight deductible. Determine the amount that the insurer would pay…

A: There are two parties in an insurance contract; one is the insurance taker and other is the…

Q: Claire Fitch is planning to begin an individual retirement program in which she will invest $3,200…

A: Time value of money is a financial concept which is used to analyze various investments and…

Q: What is the future value of an ordinary annuity that pays $1,400 per year fod10 years if the…

A:

Q: Compute the amount that can be borrowed under each of the following circumstances: (PV of $1, FV of…

A: An annuity is used in case of a future annuity – suppose an equal sum of money is invested in the…

Q: Question text If the value of the subject matter of insurance is 20,000 dinars, the amount of…

A: Compensation:- In case of Insurance, a compensation is an amount which paid by the insurance company…

Q: Grove Media plans to acquire production equipment for $845,000 that will be depreciated for tax…

A: Variables in the question:Cost of equipment=$845,000Depreciation Year 1=$329,000 Depreciation Year…

Q: Which has a higher present value a) $1,000 paid to you in 8 years if the discount rate is 7% or b)…

A: Present Value (PV) is a financial concept that calculates the current worth of a sum of money to be…

Q: Chen is 65 years old and about to retire. She has $805.000 saved to supplement his pension and…

A: Amount present = $805,000 Period of withdrawal = 13 years Interest rate = 5%

Q: If you need to take out a $40,000 student loan 2 years before graduating, which loan option will…

A: A subsidized loan refers to a loan that is specified for meeting the needs of the students who are…

Q: a) What would be the value A? b) What would be the value B? c) What is the remaining balance after…

A: Information Provided: Amount = $150,000 Term = 30 year  Rate = 6.01%

Q: A buyer bought a new home for $230,000. The lender agreed to loan the buyer $200,000 at 3% %…

A: Yield to the lender refers to the return or profit earned by the lender on their loan or investment.…

Q: 16. How much would you pay for the right to receive $28,750 at the end of 10 years if you can earn…

A: Future value = fv = $28,750 Time = t = 10 years Interest rate = r = 5%

Q: Answer

A: Part 1: Calculate the rate of gross profit on 2019 installment sales.Answer:The gross profit rate on…

Q: T purchased a life annuity for P1,500,000 which will pay him P150,000 a year. What will T include in…

A: Taxability of Life Annuity: The tax treatment of annuities is deferred, which means that taxes are…

Q: Construct the amortization schedule for a $14,000.00 debt that is to be amortized in 12 equal…

A: An amortization schedule is a table that displays the breakdown of loan payments over time. It…

Q: (Related to Checkpoint​ 6.4) ​ (Present value of a perpetuity​)   What is the present value of a…

A: The present value of a perpetuity is determined by dividing cash flows by the discount rate.