Personal Finance (The Mcgaw-hill/Irwin Series in Finance, Insurance, and Real Estate)
11th Edition
ISBN: 9780077861643
Author: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 12.1PQ1
Summary Introduction
To explain:
The creation of life insurance plan from the help of internet.
Introduction: Life insurance refers to that insurance which provides coverage to the family of insured person who died due to uncertainty. The life insurance provide a financial coverage and one should not connect it with emotions.
Expert Solution & Answer
Answer to Problem 12.1PQ1
Solution:
There are various kinds of help provided by internet:
- Comparison facility,
- Availability of registration facility,
- Online excess of plan,
- Availability of feedbacks
Explanation of Solution
There are many things in which the internet helps to create life insurance plan.
- Before taking the life insurance policy, it is important to analyze the various financial plans available in the market.
- After decide the plan, there are application forms are available on the website for the registration of policy.
- One can easily access online his plan accordingly.
- The feedbacks of the policy also can be easily available on the website through which the plan performance can be analyzed easily.
Thus, the various kinds of help provided by internet to create life insurance plan are comparison facility, availability of registration facility, online excess of plan and availability of feedback.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Suppose that you are a U.S.-based importer of goods from the United Kingdom. You expect the value of the pound to increase against the U.S. dollar over the next 30 days. You will be making payment on a shipment of imported goods in 30 days and want to hedge your currency exposure. The U.S. risk-free rate is 5.5 percent, and the U.K. risk-free rate is 4.5 percent. These rates are expected to remain unchanged over the next month. The current spot rate is $1.90.
1.Move forward 10 days. The spot rate is $1.93. Interest rates are unchanged. Calculate the value of your forward position. Do not round intermediate calculations. Round your answer to 4 decimal places.
Don't solve.
I mistakenly submitted blurr image please comment i will write values.
please dont Solve with incorrect values otherwise unhelpful.
The image is blurr please comment i will write values.
please dont Solve with incorrect values otherwise unhelpful.
Chapter 12 Solutions
Personal Finance (The Mcgaw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Ch. 12 - Prob. 12.1PQ1Ch. 12 - Prob. 12.1PQ2Ch. 12 - What is the principle of life insurance?Ch. 12 - Prob. 12.1PQ4Ch. 12 - Prob. 12.2PQ1Ch. 12 - Prob. 12.2PQ2Ch. 12 - Prob. 12.2PQ3Ch. 12 - Prob. 12.3PQ1Ch. 12 - Prob. 12.3PQ2Ch. 12 - Prob. 12.3PQ3
Ch. 12 - Prob. 12.4PQ1Ch. 12 - Prob. 12.4PQ2Ch. 12 - Prob. 12.4PQ3Ch. 12 - Prob. 12.4PQ4Ch. 12 - Why is it important to know the ratings of the...Ch. 12 - Prob. 12.5PQ2Ch. 12 - Prob. 12.5PQ3Ch. 12 - Prob. 12.5PQ4Ch. 12 - Prob. 12.6PQ1Ch. 12 - Prob. 12.6PQ2Ch. 12 - Prob. 12.6PQ3Ch. 12 - Prob. 12.6PQ4Ch. 12 - Prob. 1FPPCh. 12 - Prob. 2FPPCh. 12 - Prob. 3FPPCh. 12 - Prob. 4FPPCh. 12 - Prob. 5FPPCh. 12 - Prob. 6FPPCh. 12 - Prob. 7FPPCh. 12 - Prob. 8FPPCh. 12 - Prob. 9FPPCh. 12 - Prob. 10FPPCh. 12 - Prob. 11FPPCh. 12 - Prob. 12FPPCh. 12 - Prob. 13FPPCh. 12 - Prob. 14FPPCh. 12 - Prob. 15FPPCh. 12 - Prob. 16FPPCh. 12 - Prob. 1FPACh. 12 - Prob. 2FPACh. 12 - Prob. 3FPACh. 12 - Prob. 4FPACh. 12 - Prob. 5FPACh. 12 - Prob. 6FPACh. 12 - Prob. 7FPACh. 12 - Prob. 8FPACh. 12 - Prob. 9FPACh. 12 - Prob. 10FPACh. 12 - Prob. 11FPACh. 12 - Prob. 1FPCCh. 12 - Prob. 2FPCCh. 12 - Prob. 1CCCh. 12 - Prob. 2CCCh. 12 - Prob. 1DSDCh. 12 - Prob. 2DSD
Knowledge Booster
Similar questions
- Question 6 A five-year $50,000 endowment insurance for (60) has $1,000 underwriting expenses, 25% of the first premium is commission for the agent of record and renewal expenses are 5% of subsequent premiums. Write the gross future loss random variable: Presuming a portfolio of 10,000 identical and independent policies, the expected loss and the variance of the loss of the portfolio are given below (note that the premium basis is not given or needed): E[L] = 10,000(36,956.49 - 3.8786P) V[L] 10,000 (50,000 + 14.52P)². 0.00095 Find the premium that results in a 97.5% probability of profit (i.e. ¹ (0.975) = 1.96). Premium: Please show your work belowarrow_forwardWhat corporate finance?? can you explain this? fully no aiarrow_forwardWhat is corporate finance? how this is usefull?arrow_forward
- Pam and Jim are saving money for their two children who they plan to send to university.The eldest child will enter university in 5 years while the younger will enter in 7 years. Each child is expected spend four years at university. University fees are currently R20 000 per year and are expected to grow at 5% per year. These fees are paid at the beginning of each year.Pam and Jim currently have R40 000 in their savings and their plan is to save a fixed amount each year for the next 5 years. The first deposit taking place at the end of the current year and the last deposit at the date the first university fees are paid.Pam and Jim expect to earn 10% per year on their investments.What amount should they invest each year to meet the cost of their children’s university fees?arrow_forwardPam and Jim are saving money for their two children who they plan to send to university.The eldest child will enter university in 5 years while the younger will enter in 7 years. Each child is expected spend four years at university. University fees are currently R20 000 per year and are expected to grow at 5% per year. These fees are paid at the beginning of each year.Pam and Jim currently have R40 000 in their savings and their plan is to save a fixed amount each year for the next 5 years. The first deposit taking place at the end of the current year and the last deposit at the date the first university fees are paid.Pam and Jim expect to earn 10% per year on their investments.What amount should they invest each year to meet the cost of their children’s university fees?arrow_forwardYou make a loan of R100 000, with annual payments being made at the end of each year for the next 5 years at a 10% interest rate. How much interest is paid in the second year?arrow_forward
- Dr Z. Mthembu is the owner of Mr Granite, a business in the Western Cape. After more than 28 years of operation, the business is thinking about taking on a new project that would provide a profitable new clientele. With only R1.5 million in resources, the company is now working on two competing projects. The starting costs for Project X and Project Y are R625,000 and R600000, respectively. These projected are estimated for the next 7 years timeframe. According to SARS, the tax rate is 28%, and a discount rate of 11.25% is applied.Projects X Project YProject X Project Y129000 145000154000 145000312000 145000168000 14500098250 14500088750 14500016050 145000arrow_forwardDr Z. Mthembu is the owner of Mr Granite, a business in the Western Cape. After more than 28 years of operation, the business is thinking about taking on a new project that would provide a profitable new clientele. With only R1.5 million in resources, the company is now working on two competing projects. The starting costs for Project X and Project Y are R625,000 and R600000, respectively. These projected are estimated for the next 7 years timeframe. According to SARS, the tax rate is 28%, and a discount rate of 11.25% is applied.Projects X Project YProject X Project Y129000 145000154000 145000312000 145000168000 14500098250 14500088750 14500016050 145000arrow_forwardDr Z. Mthembu is the owner of Mr Granite, a business in the Western Cape. After more than 28 years of operation, the business is thinking about taking on a new project that would provide a profitable new clientele. With only R1.5 million in resources, the company is now working on two competing projects. The starting costs for Project X and Project Y are R625,000 and R600000, respectively. These projected are estimated for the next 7 years timeframe. According to SARS, the tax rate is 28%, and a discount rate of 11.25% is applied.Projects X Project YProject X Project Y129000 145000154000 145000312000 145000168000 14500098250 14500088750 14500016050 145000arrow_forward
- Dr Z. Mthembu is the owner of Mr Granite, a business in the Western Cape. After more than 28 years of operation, the business is thinking about taking on a new project that would provide a profitable new clientele. With only R1.5 million in resources, the company is now working on two competing projects. The starting costs for Project X and Project Y are R625,000 and R600000, respectively. These projected are estimated for the next 7 years timeframe. According to SARS, the tax rate is 28%, and a discount rate of 11.25% is applied.Projects X Project YProject X Project Y129000 145000154000 145000312000 145000168000 14500098250 14500088750 14500016050 145000arrow_forwardAn investor buys 100 shares of a $40 stock that pays an annual cash dividend of $2 a share (a 5 percent dividend yield) and signs up for the DRIP. a. If neither the dividend nor the price changes, how many shares will the investor have at the end of 10 years? How much will the position in the stock be worth? Answer: 5.000 shares purchased in year 1 5.250 shares purchased in year 2 6.078 shares purchased in year 5 62.889 total shares purchased b. If the price of the stock rises by 6 percent annually but the dividend remains at $2 a share, how many shares are purchased each year for the next 10 years? How much is the total position worth at the end of 10 years? Answer: 4.717 shares purchased in year 1 4.592 shares in year 3 3.898 shares in year 10 Value of position: $10,280 c. If the price of the stock rises by 6 percent annually but the dividend rises by only 3 percent annually, how many shares are purchased each year for the next 10 years? How much is the total position worth at the…arrow_forwardDr Z. Mthembu is the owner of Mr Granite, a business in the Western Cape. After more than 28 years of operation, the business is thinking about taking on a new project that would provide a profitable new clientele. With only R1.5 million in resources, the company is now working on two competing projects. The starting costs for Project X and Project Y are R625,000 and R600000, respectively. These projected are estimated for the next 7 years timeframe. According to SARS, the tax rate is 28%, and a discount rate of 11.25% is applied.Projects X Project YProject X Project Y129000 145000154000 145000312000 145000168000 14500098250 14500088750 14500016050 145000 Calculate the IRR for the two proposed Projectsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education