Which of the following statements about self-canceling installment notes is not correct? A. Buyer pays a premium

Question:

Which of the following statements about self-canceling installment notes is not correct?

A. Buyer pays a premium for the seller taking on the mortality risk.

B. Buyer’s remaining payments are canceled at the seller’s death.

C. Seller has no estate inclusion of the remaining payments.

D. Seller pays a premium for the buyer’s mortality risk.

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

Step by Step Answer:

Related Book For book-img-for-question

Essentials Of Personal Financial Planning

ISBN: 9781945498237

1st Edition

Authors: Susan M. Tillery, Thomas N. Tillery

See More Books

Question Posted: Apr 08, 2024 02:01 AM

See More Questions

1. Hannah is applying for a life policy on her girlfriend Sarahs life. The policy is $500,000 and carries a large premium. Hannah is the main earner, so she is concerned about not being able to pay...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Sugar (C12H22O11) is a molecular compound that stays together inwater, while NaCl and MgSO4?7H2O are ionic compounds that dissociate into cations andanions as illustrated in the NaCl example below:...
Tern Corporation, a calendar year C corporation, is solely owned by Jessica Ramirez. Tern's only business since its incorporation in 2013 has been land surveying services. In Tern's state of...
Identify the reagents that you would use to accomplish each of the following transformations: (a) (b) H.
Consider a square loop of wire that carries a clockwise current when viewed from above. What is the direction of the magnetic field at the center of the square loop due to $(a)$ the left side,...
The following is a list of 10 common security problems. For each problem, describe why it is a problem and choose a control plan from this chapter that would prevent or detect the problem from...
15.A ray of light is incident on a slab as shown in figure. The refractive index of medium of slab changes as =1+ y. The angle made by ray with x-axis at y = 2 is 30 0 air 2
Which of the following is not an incident of ownership in a life insurance policy? A. Right to assign. B. Right to make premium payments. C. Right to name beneficiaries. D. Right to terminate the...
Pat and Angie McDonald are married and, by every measure, considered very wealthy. Six weeks ago, Pat passed away unexpectedly. In meeting with their estate attorney, Angie discovers that the bypass...
On October 4, 2011, C and C Sandblasters Company purchased a new machine for $45,000. It estimated the machine's useful life at 12 years and the residual value at $4,000. On March 25, 2012, another...
How are budgets prepared for other reasons other than projecting income statement and balance sheet account balances?
What is the capital for July 1 for the Ststement of Owner's Equity?
What are some costs of quality positive and negative ? Please share examples.
Explain how forensic accountants can use the so called COFEE device?
Consider the following information: Rate of Return if State Occurs State of Probability of State Economy of Economy Boom 30 Stock A .20 Stock B Stock C .44 .31 Good .30 .13 .20 .13 Poor .20 .03 -.09...
Find the missing properties of T, P, v, u, h and x if applicable and plot the location of the three states as points in the T-v and the P-v diagrams a. Water at 5000 kPa, u = 800 kJ/kg b. Water at...
CRUZ, INC. Comparative Balance Sheets December 31, 2015 CRUZ, INC. Income Statement For Year Ended December 31, 2015 Required Use the indirect method to prepare the cash provided or used from...
a. The aim of stock market regulation is to ensure market participants have confidence in the integrity of market operations. Outline the duties of the two main supervisors in Australia: Australian...
You have just paid $20 million in the secondary market for the winning Powerball lottery ticket. The prize is $2 million at the end of each year for the next 25 years. If your required rate of return...
Discuss the role of banks in a documentary collection process for the subject: International Trade Finance.

Which of the following statements about self-canceling installment notes is not correct? A. Buyer pays a premium

Question:

Step by Step Answer:

The correct answer is D Seller pays a premium for the buyers mortality risk A selfcanceling installm...View the full answer

Essentials Of Personal Financial Planning

Students also viewed these Business questions