Determine the present value of the insurance benefits that could provide $ 40,000 over the next 15

Question:

Determine the present value of the insurance benefits that could provide $ 40,000 over the next 15 years for the Sampson family. Assume that the insurance payment could be invested to earn 6% interest over time.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Personal Finance

ISBN: 978-0132994347

5th edition

Authors: Jeff Madura

See More Books

Question Posted: Oct 13, 2015 05:44 AM

See More Questions

Determine the present value of the following singleamounts: Future Amountinterest RatelNo. of Periods 10 12 20 S 20,00 14,00 25,00 40,000 12 10
Determine the present value of $100,000 to be received at the end of each of four years, using an interest rate of 6%, compounded annually, as follows: (a) By successive computations, using the...
Determine the present value of $750,000 to be received in three years, using an interest rate of 12%, compounded annually. a. Use the present value table in Exhibit 4. b. Why is the present value...
Hanover Inc. expects to have a cash balance of 546.000 on January 1, 2017. Relevant monthly budget Prepare cash budget, data for the first two months of 2017 are as follows: (10 4) Al' 1. Collections...
The Cardinal Group had filed on a consolidated basis for several years with its wholly owned subsidiary, Swallow, Inc. The group used a calendar tax year. On January 25, 2014, Heron acquired all of...
The following information relates to Home Depot, Inc., and Lowes Companies, Inc. for their 2017 and 2016 fiscal years. Required a. Compute the following ratios for the companies 2017 fiscal years...
A rectangular loop of length $\ell=80 \mathrm{~mm}$, width $w=$ $60 \mathrm{~mm}$, and resistance $R=20 \mathrm{~V} / \mathrm{A}$ is located in a uniform magnetic field of magnitude \(B=0.50...
In the Industrial Supply Company example (Table 4.4) it was assumed that the company's fixed assets were being used at nearly full capacity and that net fixed assets would have to increase...
a) Risk analysis is the study of the underlying uncertainty of a given course of action and refers to the uncertainty of forecasted cash flow streams, the variance of portfolio or stock returns, the...
1. What types of conflict is the team experiencing in the challenge video? 2. What aspects of the negotiation process would best resolve the conflict and why would this work? 3. What conflict...
Shortly after Steve graduated from college, he considered a whole life insurance policy that would provide $ 10,000 in life insurance protection and accumulate a cash value of twice his current...
Considering the insurance benefits needed to provide $ 40,000 over the next 15 years, plus the additional $ 330,000 of insurance coverage, what amount of insurance coverage is needed?
J.K. Ltd invited application to issue 30,000 equity shares of face value 10 each at par. The amount to be paid as to 6 at the time of application, 3 on allotment, Re. 1 per share on first and final...
You probably think of wet surfaces as being slippery. Surprisingly, the opposite is true for human skin, as you can demonstrate by sliding a dry versus a slightly damp fingertip along a smooth...
U.S. nickels have a mass of 5.00 g and are 1.95 mm thick. If you stack 3 nickels on a table, how far above the table is their center of gravity?
A gymnast on the uneven parallel bars is at rest, tipped at a 45 angle from the vertical. The distance from her hands to her feet is 1.8 m. If we model her body as having a uniform cross section and...
When you stand quietly, you pivot back and forth a very small amount about your ankles. Its easier to maintain stability if you tip slightly forward, so that your center of gravity is slightly in...
In 2014, a space probe approached the rocky core of the comet ChuryumovGerasimenko, which is only a few km in diameter. The probe then entered orbit around the comet at a distance of 30 km. The comet...
Frisbee Hardware purchased inventory for $100,000 that was held in inventory until it was sold later in the year for $135,000. a. Calculate the impact on cash of these transactions, assuming Frisbee...
What did Lennox gain by integrating their WMS, TMS, and labor management systems?
Much of the attention to the credit crisis was focused on its adverse effects on financial institutions, but many other types of firms were also affected. Explain why the numerator of the MNC...
Because of the low labor costs in Thailand, Melnick Co. (based in the United States) recently established a major research and development subsidiary there. The wholly-owned subsidiary was created to...
MNCs tend to expand more when they more easily access funds by issuing stock. In some countries, shareholder rights are very limited and so the MNCs are less able to raise funds by issuing stock....
F. Pierce Products Inc. is financing a new manufacturing facility with the issue in March of $20,000,000 of 20-year bonds with semiannual interest payments. It is now October, and if Pierce were to...
Watch the video, Critical Theory, Social Justice and Christianity: Are they Compatible? https://www.youtube.com/watch?v=qnmJX5hEenY&t=2894s&ab_channel=NOBTSApologetics Review the articleThe...
Describe an example of a data privacy law or any obstacle to international legislation that pertains to data privacy.

Determine the present value of the insurance benefits that could provide $ 40,000 over the next 15

Question:

Annual Amount Number of Years Annual Interest Rate Present Value $40,000 15 6% |

Step by Step Answer:

Amount of insurance needed Annuity amou...View the full answer

Personal Finance

Students also viewed these Corporate Finance questions