ADAM RECEIVED $50,000 OF LIFE INSURANCE PAYABLE BECAUSE OF HIS WIFE'S DEATH. HE AGREED TO RECEIVE...
Homework Answers
Annual Payment received = $ 12,000
Number of payments = 5
Total amount received = 12,000 x 5 = $ 60,000
Life Insurance payment received = $ 50,000
Total Interest = $ 10,000
Annual Interest = 10,000/5 = $ 2,000
Therefore, out of annual payment of $ 12,000 , interest portion is $ 2,000
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ADAM RECEIVED $50,000 OF LIFE INSURANCE PAYABLE BECAUSE OF HIS
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