Delayed Annuity (SDT) Christina is planning on buying an insurance policy that will pay for $156,750...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Delayed Annuity (SDT) Christina is planning on buying an insurance policy that will pay for $156,750 a year for 25-years, with the first payment occurring in 15 years, if she is still alive, otherwise the policy will payout a lump sum to her heirs at the end of year 14. The rate of return on the policy is5.5 percent? What is the value of the lump payout? If Christina purchases the policy, what is the maximum she is willing to pay? Delayed Annuity (SDT) Christina is planning on buying an insurance policy that will pay for $156,750 a year for 25-years, with the first payment occurring in 15 years, if she is still alive, otherwise the policy will payout a lump sum to her heirs at the end of year 14. The rate of return on the policy is5.5 percent? What is the value of the lump payout? If Christina purchases the policy, what is the maximum she is willing to pay?
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Interview Notes . Rose Jones, age 57, is single Rose earned wages of $52,000 and was enrolled the entire year in a high deductible health plan (HDHP) with self-only coverage During the yeah ost...
-
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
-
For your job as the business reporter for a local newspaper, you are given the task of putting together a series of articles that explain the power of the time value of money to your readers. Your...
-
Describe what is meant by the term balanced in the term balanced scorecard method.
-
How is the discovery of riboswitches relevant to bacterial pathology?
-
The vertical stress z under the corner of a rectangular area subjected to a uniform load of intensity q is given by the solution of Boussinesqs equation: Because this equation is inconvenient to...
-
Smithson, Inc., manufactures lead crystal glasses. The standard direct labor time is 1/4 hour per glass, at a price of \($15\) per hour. The actual results for the production of 6,800 glasses were...
-
A. Set up the linear programming problem that a benefits officer might use to determine the total-return maximizing allocation of the employee's pension portfolio. Use the inequality forms of the...
-
An article reports that cats sleep on the average of 16 hours a day.A cat owner believes the average number of hours cats sleep is different from that. Out of a random sample of 14 cats, the average...
-
SOS Array S.A. is a company based in Brazil that makes a full line of emergency locator beacons for those who are working and/or located in remote areas. The company has recently been awarded United...
-
What is the System Element Architecture (SEA) Model?
-
What is the Users Level 0 Enterprise Model?
-
How are control flow and data flow related?
-
Develop a framework for integrating cost and value.
-
What is meant by a systems data flow?
-
Assume that you are in the business of making cotton clothing. Your business is located in the U.S. However, you purchase your cotton from Egypt because of the quality of the cotton. The price of...
-
On October 1, 2021, Adoll Company acquired 2,600 shares of its $1 par value stock for $38 per share and held these shares in treasury. On March 1, 2023, Adoll resold all the treasury shares for $34...
-
Two investment projects are being considered by the Gem Company. Project A, costing \(\$ 16,000\) with an estimated useful life of three years, will earn a net cash inflow of \(\$ 8,000\) per year....
-
Computing Payback Period, Net Present Value, Internal Rate of Return, and Accounting Rate of Return A machine costing \(\$ 50,000\) is expected to provide the following net cash flows: The expected...
-
Jack, Jones, and Johnson, three franchised home appliance dealers, have requested short-term financing from their company. The dealers have agreed to repay the loans within three years, and to pay...
Study smarter with the SolutionInn App