# Consider a five-year term life insurance policy with face amount equal to $100,000 for a 40-year-old with

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## Question:

Consider a five-year term life insurance policy with face amount equal to $100,000 for a 40-year-old with an interest rate of 10%.

(a) calculate the single premium for the five-year term life insurance policy with face amount equal to $100,000 for a 40-year-old with an interest rate of 10%.

(b). Ignoring expenses, what would be the policy's expected balance (i.e., value or a sum which should be in the account) equal after two years

**Related Book For**

## Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding