12. Bob is a sole proprietor of DPM Insurance Group, which mainly deals in home and...

 

Transcribed Image Text:

12. Bob is a sole proprietor of DPM Insurance Group, which mainly deals in home and auto insurance. He is considering expanding his tranchise by purchasing another brokerage. While speaking with the bank, he is advised he will need to secure a life insurance policy insuring himself covering the value of the loan he requires to purchase the brokerage. The policy would be collaterally assigned to the bank for the outstanding balance of the loan Bob's annual premium for the required coverage comes to $2,456. He's undecided if he wants to pay the annual premium all at once, and instead play monthly. in percentage terms, if the modal factor is 0.09, how much more is Bob paying for his policy by paying monthly versus paying only 81 O 10% O 12% O 14% se 7 option 12. Bob is a sole proprietor of DPM Insurance Group, which mainly deals in home and auto insurance. He is considering expanding his tranchise by purchasing another brokerage. While speaking with the bank, he is advised he will need to secure a life insurance policy insuring himself covering the value of the loan he requires to purchase the brokerage. The policy would be collaterally assigned to the bank for the outstanding balance of the loan Bob's annual premium for the required coverage comes to $2,456. He's undecided if he wants to pay the annual premium all at once, and instead play monthly. in percentage terms, if the modal factor is 0.09, how much more is Bob paying for his policy by paying monthly versus paying only 81 O 10% O 12% O 14% se 7 option

Answer rating: 100% (QA)

Step 11 First we need to find the denominator to divide the annual premium with T... View the full answer