Number of Years = 17 years
Rate = 5.5%
The minimum purchase price of the policy =
260,000/(1+5.5%)17 = 104,636.10
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Present value. Standard Insurance is developing a long-life insurance policy for people who outlive their retirement...
Present value. Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg. The policy will pay out $240 comma 000 on your 85 th birthday. You must buy the policy on your 60 th birthday. The insurance company can earn 9% on the purchase price of your policy. What is the minimum purchase price the insurance company should charge for this policy?
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Peg Gasperoni bought a $50,000 life insurance policy for $240 per year. Ryan Life Insurance Company sent her the following billing instructions along with a premium plan example: "Your insurance premium notice will be mailed to you in a few days. You may pay the entire premium in full without a finance charge or you may pay the premium in installments after a down payment and the balance in monthly installments of $60. The finance charge will be added to...
zoom Peg Gasperoni bought a $50,000 life insurance policy for $340 per year. Ryan Life Insurance Company sent her the following billing instructions along with a premium plan example: "Your insurance premium notice will be mailed to you in a few days. You may pay the entire premium in full without a finance charge or you may pay the premium in installments after a down payment and the balance in monthly installments of $85. The finance charge will be added...
zoom please Peg Gasperoni bought a $50,000 life insurance policy for $340 per year. Ryan Life Insurance Company sent her the following billing instructions along with a premium plan example: "Your insurance premium notice will be mailed to you in a few days. You may pay the entire premium in full without a finance charge or you may pay the premium in installments after a down payment and the balance in monthly installments of $85. The finance charge will be...
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zoom picture please Peg Gasperoni bought a $50,000 life insurance policy for $340 per year. Ryan Life Insurance Company sent her the following billing instructions along with a premium plan example: "Your insurance premium notice will be mailed to you in a few days. You may pay the entire premium in full without a finance charge or you may pay the premium in installments after a down payment and the balance in monthly installments of $85. The finance charge will...
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