Suppose you are 35 and have a $105,000 face amount, 15-year, limited-payment, participating policy (dividends will be used to buildup the cash value of the policy). Your annual premium is $945. The cash value of the policy is expected to be $4,200 in 15 years. Usingtime value of money and assuming you could invest your money elsewhere for a 8 percent annual yield, calculate the net cost ofinsurance. Use (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D)Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round time value factor to 3decimal places and final answer to the nearest whole number.Answer is complete but not entirely correct.Net cost of insurance38,896$

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uppose you are 35 and have a $105,000 face amount, 15-year, limited-payment, participating policy (dividen p the cash value of the policy). Your annual premium is $945. The cash value of the policy is expected to be me value of money and assuming you could invest your money elsewhere for a 8 percent annual yield, calc Insurance. Use (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round

uppose you are 35 and have a $105,000 face amount, 15-year, limited-payment, participating policy (dividen p the cash value of the policy). Your annual premium is $945. The cash value of the policy is expected to be me value of money and assuming you could invest your money elsewhere for a 8 percent annual yield, calc Insurance. Use (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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