Question: They answer it but is wrong :( Calculating a Death Benefit Alexandra Cunningham of Gardner, Massachusetts, has a $180,000 participating cash-value policy written on her

They answer it but is wrong :(  They answer it but is wrong :( Calculating a Death Benefit
Alexandra Cunningham of Gardner, Massachusetts, has a $180,000 participating cash-value policy written

Calculating a Death Benefit Alexandra Cunningham of Gardner, Massachusetts, has a $180,000 participating cash-value policy written on her life. The policy has accumulated $4,400 in cash value; Alexandra has borrowed $2,800 of this value. The policy also has accumulated unpaid dividends of $1,243. Yesterday Alexandra paid her premium of $1,500 for the coming year. What is the current death benefit from this policy? ekook Do the Math 12-3 Calculating a Death Benefit Alexandra Cunningham of Gardner, Massachusetts, has a $180,000 participating cash value policy written on her life. The policy has accumulated $4,400 in cash value Alexandra has borrowed $2,800 of this value. The policy also has accumulated unpaid dividends of $1243. Yesterday Alexandra paid her premium of $1,500 for the coming year. What is the current death benefit from this policy? 98766 Solution :- Current death benefit from this policy = $178,143 Explanation :- Following information are given; Participating cash value = $180,000 Accumulated cash value = $4,400 Borrowed amount = $2,800 Accumulated unpaid dividends = $1,243 Coming year dividend paid = $1,500 Current death benefit from this policy = = (Participating cash value + Unpaid dividend + Borrowed amount - Coming year dividend paid - Accumulated cash value) Now let's put the values in above given formula; ($180,000 + $1,243 + $2,800 $1,500 $4,400) = $178,143 If there is any doubt please ask in comments Thank you please rate

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!