A fully discrete n payment whole life insurance policy is issued to (x). The expenses on...
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A fully discrete n payment whole life insurance policy is issued to (x). The expenses on the policy are: Sales commission 6% of gross premium 4% of gross premium $30 in 1st year, $5 in n-1 subsequent years $15 Tax Per policy Claim settlement Given that Ax=.3, A₁.1, Ax+n=.4 and i=.06, which of the following is the correct formulation for the expense premium G(b), for this policy with face amount b, where b is in units of 10,000? A) 417.7b+10.2 D) 471.7b+12.1 B) 417.7b+ 12.1 C) 471.7b+10.2 E) 417.7b- 10.2 A fully discrete n payment whole life insurance policy is issued to (x). The expenses on the policy are: Sales commission 6% of gross premium 4% of gross premium $30 in 1st year, $5 in n-1 subsequent years $15 Tax Per policy Claim settlement Given that Ax=.3, A₁.1, Ax+n=.4 and i=.06, which of the following is the correct formulation for the expense premium G(b), for this policy with face amount b, where b is in units of 10,000? A) 417.7b+10.2 D) 471.7b+12.1 B) 417.7b+ 12.1 C) 471.7b+10.2 E) 417.7b- 10.2
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C 4717b 102 Explanation The expense premium Gb for this policy with face a... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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