Question: (PLEASE SHOW ALL WORK AND VALUES) (PLEASE SHOW ALL WORK AND VALUES) Standard Insurance is developing a long-life insurance policy for people who outlive their

(PLEASE SHOW ALL WORK AND VALUES)

Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg. The policy will pay out S250,000 on your eighty-fifth birthday. You must buy the policy on your sixty-fifth birthday. The insurance company can earn 7% on the purchase price of your policy. What is the minimum purchase price the insurance company should charge for this policy? 5) 6) Your coin collection contains fifty 1952 silver dollars. If your parents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2067, assuming they appreciate at 4% annual rate

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