The face value of the insurance policy is RO 400000 and the rate of insurance premium is RO 25 per thousand and the premium paid monthly. Which one of the following is premium paid monthly? a. RO 510 O b. RO 875 O c. None of the options d. RO 260

The face value of the insurance policy is RO 400000 and the rate of insurance premium is RO 25 per thousand and the premium paid monthly. Which one of the following is premium paid monthly? a. RO 510 O b. RO 875 O c. None of the options d. RO 260

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: Which is the better option if the interest rate is r=0.10 (r=10%)? Show all work used to arrive at…

A: Option 1: Receives $1000 at 10% today But if we invest the $1000 received today for 5 years

Q: The alternatives are mutually exclusive and the MARR is 6% per year. Which alternauve selected? (ize

A: The semiannual effective interest rate can be defined as the compounded interest rate for six…

Q: What is the FV of a RO 800, 8-year loan with 2% monthly compound interest? a. 3328.91 b.…

A: Using excel FV function

Q: An annuity pays $14 per year for 45 years. What is the future value (FV) of this annuity at the end…

A: > Given:> Rate of interest per annum = 9%> Amount of each deposit = 14> Number of years…

Q: What is the Present Value of OMR 1500, by considering 10 year loan with 7% annual interest? (7%…

A: Present value: Provided a certain rate of return, present value (PV) is the actual value of a…

Q: Problem B: Life Insurance Evaluate two investment options. i-10% n=20 Option A: Invest $150,000…

A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

Q: If life insurance is pledged as collateral for a loan, how much can be borrowed? face value of the…

A: The correct answer is b) Cash surrender value of the policy.When life insurance is pledged as…

Q: Find the annual premium

A: INTRODUCTION: When sales comprise both single premium and regular premium business, annual premium…

Q: Question 19 What type of annuity is represented by the graph below? 1 2 3 k-1 k A, A2 A3 Ak1 Ak P.

A: 19: This is "annuity due" Explanation: The cash flow diagram pertains to annuity due as payments…

Q: payment occurs in year 1, the interest rate is 10% and the present value at year zero for the…

A: Present value The value of future money at the present is known as the present value of money. The…

Q: In calculating insurance premiums, the actuarially fair insurance premium is the premium that…

A: Insurance premium refers to the premium paid by the insurer to the insurance company for the purpose…

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: & Ordinary annuity payment Fill in the missing annuity values in the following table for an ordinary…

A: Annuity is the regular payment made from an investment for particular period at a specific interest…

Q: of the Using Table 19-3 Calculate the value non for future options for the life insurance. policy.…

A: Life insurance is a contract between a person and an insurance company. The firm offers to pay the…

Q: Imagine you borrow $600 from your roommate, agreeing to pay her back $600 plus 7 percent nominal…

A: Fisher Equation defines the relationship between the real rate of interest and the nominal rate of…

Q: If you are expecting to get OMR 48918 at the end of 3 years. Calculate its present value if the…

A: Present value of an amount is the discounted value of a future amount at a specified interest rate…

Q: D) At a certain Interest rate the present value of the following two payment patterns are equal. (i)…

A: Interest rate is the rate earned on any investment. It is also referred to as Annual Percentage rate…

Q: Complete this question by entering your answers in the tabs below. Req 1A Req 18 Reg 2A S S…

A: The concept of time value of money will be used here. As per this concept the worth of money changes…

Q: What is the FV of a RO 800, 6-year loan with 2% monthly compound interest? a. All options are…

A: Using excel FV function

Q: E 14956.75 7. Edward Cariaga loans P35,300 at 6½% simple interest, how long it will take him to get…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: what is the future value of a single payment of $10,000 after 4 pay periods using an interest rage…

A: Future value is the value of an investment or cash flow at a specified time in the future, based on…

Q: Consider the two different options to receive money: • Receive 150 at time 0, 225 at time n years,…

A: Quantum and timing of cash flows under two different streams of payments have been provided. They…

Q: If you are expecting to get OMR 4900 at the end of 5 years. Calculate its present value if the…

Q: Lynn Ally, owner of a local Subway shop, loaned $51,000 to Pete Hall to help him open a Subway…

A: Future Value: It represents the expected value of the current amount of the sum. It is computed by…

Q: An survival model is given by the survival function S, (z) = e 0.0008 Suppose a whole life insurance…

A: The survival function is given by:The benefit payable is $118250Compound interest rate,

Q: If you are expecting to get OMR 7100 at the end of 17 years. Calculate its present value if the…

A: to find present value we will using the following formula PV = FV / (1 + (r/t) )t*n Where PV =…

Q: None

A: a. The actuarially fair insurance premium is the present value of the expected loss. The expected…

Q: Live Forever Insurance Company is selling a perpetual annuity contract that pays $2,700 monthly. The…

A: An annuity is a financial product where you make regular payments, and in return, you receive a…

Q: Company RJay RJay Sell-Mart Xenon Time to Expiration (months) 1 2 5 6 Strike 60 70 60 7.50 SO 62.77…

A: A call option gives the right but not the obligation to buy at the strike price.We can determine the…

Q: Suppose bank a offers a 229020 year 6.4% fixed rate mortgage with closing cost of 2600 + 4 points…

A: Closing cost refers to the cost which includes some kinds of fees and charges to close the real…

Q: The Maybe Fay Life Insurance Co. 1s tying to sell you an Investment policy tt will pay you and hetrs…

A: Present value = Amount to be paid forever / Required return

Q: K If the risk-free rate of interest (rf) is 3.5%, then you should be indifferent between receiving…

A: Future Value is that amount which includes the interest earned on the investment. If we will…

Q: Dhofar Insurance Company has made an investment in another company that will guarantee it a cash…

A: Given information: Cash flows: OMR 37,250 Discount rate : 15% Time period : 5 years

Q: you are expecting to get OMR 10240 at the end of 3 years. Calculate its present value if the…

A: Future value = Present value*((1+interest rate)^time) Formula to calculate present value…

Q: 6. You're considering leasing or purchasing an asset with the following cash flows. a. Calculate the…

A: Present value of alternatives is computed for decision making. The present value is computed using…

Q: What is the discount margin? +30.94 bps -309.4 bps -30.94 bps +309.4 bps

A: The discount margin is used to evaluate a floating-rate security's attractiveness by calculating the…

Q: Equitable Insurance Company offers a fixed indexed annuity to Dane. The annuity has a cap of 10% and…

A: Let's calculate the end-of-year balance for Dane's annuity with detailed steps: 1. Initial…

Q: 3.3 Suppose you buy theS&Rindex for $1000 and buy a 950-strike put. Construct payoff and profit…

A: The put-call parity states that profits from a portfolio of buying a stock/index and a put option…

Q: Ivan buys a fixed indexed annuity for $1,000 with the following features: In any year, if the return…

A: An option contract is an agreement that gives the buyer the right to acquire or transfer an…

Question

100%

The face value of the insurance
policy is RO 400000 and the rate of
insurance premium is RO 25 per
thousand and the premium paid
monthly. Which one of the
following is premium paid
monthly?
a. RO 510
O b. RO 875
O c. None of the options
O d. RO 260

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

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 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

If you are expecting to get OMR 11240 at the end of 9 years; calculate its present value if the interest rate is 2.24% and is computed yearly Select one: O a. 9046.11 b. None of the option O c. 9064.11 d. 2223.23 O e. 9192.99
(please solve it fast i will give thumbs up)
Consider three alternatives A, B, and "do-nothing." (a) Construct a choice table for interest rates from 0% to 100%. Year A B 0 1-5 –$10,000 3,200 -$15,000 4,500
I calculated the PV value of a $100 payment stream at 1% for 6 years payable at the beginning of the year to be $585.34. Likewise, if I have a balance today of $584.34 in 6 years this balance would be paid off if I deduct $100 at the beginning of each year at 1% interest. (See image capture 1) However I run into issues whe I use two interest rates. Time Payment Rate PV 0 $100 1% 100/(1.01)^0=100 1 $100 1% 100/(1.01)^1=99.01 2 $100 1% 100/(1.01)^2=98.03 3 $100 2% 100/((1.01)^2*(1.02))=96.11 4 $100 2% 100/((1.01)^2*(1.02)^2)=94.22 5 $100 2% 100/((1.01)^2*(1.02)^3)=92.38 The Total PV for this stream is $579.75. So why doesn't the following equation yield zero: Time Payment Rate Balance…
Consoder the following insurance company options: Company 1: pays 4.3% compounded monthly on the cash value of thier polocies Company 2: pays 4.32% compounded semiannually on the cash value of thier polocies What is the APY offered by each company? (round answers to nearest hundredth) Company 1 = Company 2 = Which company offers a higher yield?
If you are expecting to get OMR 10240 at the end of 3 years. Calculate its present value if the interest rate is 9.42% and is computed quarterly. Select one: a. 7744.46 O b. 3344.46 O c. 6644.46 O d. 2244.46 e. None of the options
You are to make monthly deposits of $825 into a retirement account that pays an APR of9.7 percent compounded monthly.If your first deposit will be made one month from now, how large will your retirementaccount be in 32 years? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)
We Pay Insurance Co. will pay you $1,250 each quarter for 30 years. You want to earn a minimum interest rate of .9'percent per quarter. What is the most you are willing to pay today for these payments?Multiple Choice answersA. $88.008.36B. $86,490.98 C. $91,043.14D. $90,621.63E. $269.992.65
If you are expecting to get OMR 35743 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly. O a. 27367.46 O b. 27600.77 O c. All the given choices are not correct O d. 33435.92 O e. 12710.88
klp.3
Find the expected net profit of an insurance company on a life-insurance policy whose death benefit is $1,000,000 if the annual premium for the policy is $2000 and the chance of the customer dying within the next year is 0.002. Interpret. (show work)