In Problems 20-52: a. State the type; and (mathbf{b}). Answer the question. A 5-year term insurance policy

Question:

In Problems 20-52:

a. State the type; and $\mathbf{b}$. Answer the question.

A 5-year term insurance policy has an annual premium of $\$ 300$, and at the end of 5 years, all payments and interest are refunded. What lump-sum deposit is necessary to equal this amount if you assume an interest rate of 3.5\% compounded annually?

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

Step by Step Answer:

Related Book For answer-question

Nature Of Mathematics

ISBN: 9781133947257

13th Edition

Authors: Karl J. Smith

See More Books

Question Posted: Jan 28, 2024 01:03 AM

See More Questions

Insurance companies have developed a product called finite insurance. Under finite insurance, a client firm enters into an insurance contract under which it pays annual premiums to the insurer that...
The Bigfork Company is a retail company that began operations on January 1,2018. The Bigfork Company is authorized to issue 1,000,000 shares of P10 par value ordinary share and 500,000 shares of 3%,...
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...
4. Papo and Pepe are two barbers from a small barbershop. Theyhave their two court chairs plus two waiting chairs. The followingresults were found: P0 = 1/16 P1 = 4/16 P2 = 6/16 P3 = 4/16 a. What is...
Find the increment of the free energy of the surface layer when two identical mercury droplets, each of diameter d = 1.5 mm, merge isothermally.
The late Nobel Laureate economist George Stigler wrote that the purely economic case against monopoly is that it reduces aggregate economic welfare. When the monopolist raises prices above the...
Why is it advisable to obtain a written confession from the subject of an investigation?
Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 7...
Rene and Fred work in the same department. They must work together to complete a report on the last day of each month. Rene is working in her cubicle when Fred walks up and starts a conversation. If...
In Problems 20-52: a. State the type; and $\mathbf{b}$. Answer the question. What annual deposit is necessary to have $\$ 10,000$ in 5 years if all the money is deposited at $1.5 \%$ interest...
In Problems 20-52: a. State the type; and $\mathbf{b}$. Answer the question. You deposit $\$ 300$ at the end of each year into an account paying $2 \%$ compounded annually. How much is in the...
John and Martha are planning to be married. Both are professionals each with taxable incomes of $89,700 annually. They are deciding on a wedding date. They have two dates to choose from: December 14,...
My dad made $30,000 back in 1995. At that time the CIP was 152.4 . In 2011 I stared my first job. The CIP was 223.47. How much did I make in 2011? Explain step by step in detailed
Image transcription text Question 27 {3 points) Suppose parent B's hourly wage rises to $75. The household's budget constraint implies that household consumption and the number of children must...
Chrome File Edit View History Bookmarks Profiles Tab Window Help PG Campus Unit 4 Lab Assignment - MT2 Do Homework - Unit 4 Lab As Dashboard + Mon Jan 8 1:00 PM...
Below is a bar chart showing the frequencies of ages for Representatives from the states of California (CA) and Florida (FL). Count of state abbrev state abbrev CA FL Less than 72.83 years Between...
a) Use the Quotient Rule to find the derivative of the given function. b) Find the derivative by dividing the expressions first. y= X 7 3 for x = 0
What is a perpetual accounting system? What journal entries are involved?
A regular deposit of $100 is made at the beginning of each year for 20 years. Simple interest is calculated at i% per year for the 20 years. At the end of the 20-year period, the total interest in...
Analysis of a Moon rock shows that 82% of its initial K-40 has decayed to Ar-40, a process with a half-life of 1.2x10 9 years. How old is the rock?
Youre assessing the safety of an airport bomb-detection system in which neutron activation of the stable nitrogen isotope 15 7 N turns it into unstable 1 15 7 N. The N-16 decays by beta emission with...
Brachytherapy is a cancer treatment involving implantation of radioactive seeds at the tumor site. Iridium-192, often used for cancers of the head and neck, undergoes beta decay by electron capture...
Toshiba Accounting Scandal Toshiba Corporation, a Japanese electronics and engineering conglomerate with headquarters in Tokyo, produces a wide range of products, including personal computers,...
< PLEASE O REMOVE Help Save & Exit Subm ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252F......
A problem with the federal reporting of charge revenues is: Group of answer choices all of these responses are problems with reporting of charge revenue. the revenue is credited to the account from...

In Problems 20-52: a. State the type; and (mathbf{b}). Answer the question. A 5-year term insurance policy

Question:

Step by Step Answer:

Nature Of Mathematics

Students also viewed these Sciences questions