Suppose your annual premium for a $20,000, 20-year limitedpayment policy is $450 over the 20-year period. The

Question:

Suppose your annual premium for a $20,000, 20-year limitedpayment policy is $450 over the 20-year period. The cash value of your policy at the end of 20 years is $8,500. Assume that you could have invested the annual premium in a mutual fund yielding 7 percent annually. What is the net cost of your insurance for the 20-year period?

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

Step by Step Answer:

Related Book For  answer-question

Personal Finance

ISBN: 9781264101597

14th Edition

Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart

Question Posted: