The following table shows the average life expectancies in several countries. Assume that all premiums you calculate are based on end-of-month deposits in a fund yielding 5.8% annual interest compounded monthly to be paid out when a person reaches the life expectancy. HINT [See Example 2.] Country Japan Canada U.K. U.S. Mexico China India Life Expectancy: Male Life Expectancy: Female Need Help? 80 Read It 87 80 84 79 76 83 81 73 79 74 77 64 Calculate the life insurance monthly premium that a 30-year-old female in Japan would pay for a $3,000,000 policy. (Round your answer to the nearest cent.) $ 68

The following table shows the average life expectancies in several countries. Assume that all premiums you calculate are based on end-of-month deposits in a fund yielding 5.8% annual interest compounded monthly to be paid out when a person reaches the life expectancy. HINT [See Example 2.] Country Japan Canada U.K. U.S. Mexico China India Life Expectancy: Male Life Expectancy: Female Need Help? 80 Read It 87 80 84 79 76 83 81 73 79 74 77 64 Calculate the life insurance monthly premium that a 30-year-old female in Japan would pay for a $3,000,000 policy. (Round your answer to the nearest cent.) $ 68

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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you want to go to Europe 4 years from now, and you can save $3300 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will retum 8.5% per year. Under these conditions, how much would you have in your account by the time you are ready for your trip? O a. $12, 344.53. b. $13,799.76 O c. $15, 765.34 O d. $11, 235.11 • e. $14,980.40
suppose you want to buy a new car that costs you 11993 OMR by a loan from bank Muscat for 6 years. the bank charges you 4.004 percent on your loan. what is the annual payment should you pay to the bank every year on your loan? Select one: a. 2827.57 b. 62860.71 c. None of the options d. 2288.11 e. 1921.51
Engr. Marquez wants to get from her bank account P29,120.84, 12 years from now. How much should she invests for three consecutive years (annually) starting this year if the interest rate is 0.23? "Use 4 decimal places
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You want to go to China for 2 months. You estimate the trip will cost 11,000 in today’s dollars. You want to go in 6 years. If inflation is 3% a year, what is your financial goal? If you make a one-time deposit today at 4% over the period, how much do you deposit?
Suppose you just won the state lottery, and you have a choice between receiving $2,515,000 today or a 20-year annuity of $220,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. O a. 6.88% O b. 12.96% O c. 6.04% O d. 5.69% O e. 8.75%
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1. Zunio would like to buy his parents two return flight tickets to Seoul as their 37th wedding anniversary gift three years from now. The airfares is priced at RM3000 today. Inflation is expected to increase by 4% per year over a period of three years. How much must Janice deposit annually in an saving account paying 3% percent interest in order to have enough money to send her parents overseas three years later?
Considering the Annuity Formula: In Western countries a client who intend to buy a house apply for an annuity1 housing loan attheir bank. After the pay-out of the debt amount the client pays a constant (annual) amount(interest and repayment of debt) to the bank for e.g. 25 years. The client is owner of thehouse and owes money to the bank, after 25 years (s)he is free of debt and still owns thehouse. Islamic law generally prohibits a charge of interest so that Islamic banks offer the followingIslamic housing “loan contract” (called “Islamic loan”):1. The house is bought by the bank in t = 0 so that she is owner of the house.2. The client pays a periodic rent to the bank for a defined period of 25 years.3. After 25 years the bank donates the house to the client (“for free”) if the rent wasregularly paid (without any outstanding payments). Question 1: Please specify all possible parameters (i.e. variables) on an Islamic loan contract so thatan Islamic bank can calculate the conditions of…
A man wants to get from her bank account ¥26,265.58, 8 years from now. How much should he invest for three consecutive years (annually) starting this year if the interest rate is 0.243 (24.3%)?
Suppose a life insurance company sells a $250,000 one-year term life insurance policy to a 24-year-old female for $360. The probability that the female survives the year is 0.999477. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to two decimal places as needed.) Which of the following interpretation of the expected value is correct? O A. The insurance company expects to make an average profit of $32.71 on every 24-year-old female it insures for 1 month. O B. The insurance company expects to make an average profit of $359.81 on every 24-year-old female it insures for 1 year. O C. The insurance company expects to make an average profit of $20.84 on every 24-year-old female it insures for 1 month. O D. The insurance company expects to make an average profit of $229.25 on every 24-year-old female it insures for 1 year.

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