Q: Kenji wants to buy a $150,000 term life insurance policy. He is 30 years old. Using the premium…
A: We can use the provided table to determine the amount that Kenji will have to pay as premium.
Q: What equal deposits should be placed by Carolyn Jane in a credit cooperative at the end of each year…
A: Equated Annual Deposit: It is a fixed deposit amount made by a investor to a financial…
Q: Consider a person who begins contributing to a retirement plan at age 25 and contributes for 40…
A: Calculate Value of the amount at age of 65 as below: Resultant table: Hence, plan has value of…
Q: ane will retire in 30 years. This year he wants to deposit an amount of €150,000 to become available…
A: The future value of today amount depends on the interest rate and period of deposit. The future…
Q: 2 Darius, age 52, wants to pay no more than $800 a year in life insurance. If the annual life…
A: Annual life insurance premium rate = $5.38 per $1000 of the face value Largest 15-year term policy…
Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…
A: Annuity is type of financial instrument (insurance contract) in which you pay certain amount…
Q: Darius, age 42, wants to pay no more than $800 a year in life insurance. If the annual life…
A: Life insurance, in general, is a contract where in exchange of the premium, the insurance company…
Q: A man has just taken retirement at age 50. He will receive 5,000 monthly in retirement benefits…
A: Time value tells that money received today has more value than that of receiving the exact value…
Q: A 25-year-old and a 50-year-old apply for 10-year term life insurance plans. Which person will have…
A: Term life insurance plan means where you need to pay premium for few year and repayment will be…
Q: Sally is 25 years old and has decided to start a retirement program. Beginning in exactly one year,…
A: We need to use future value of ordinary annuity formula to calculate total saving value at the time…
Q: A couple will retire in 40 years; they plan to spend about $35,000 a year in retirement, which…
A: Now problem needs to solved in two steps first calculate Present value of retirement fund and next…
Q: a couple has 25,000 in their retirement savings today. How many years do they have to save at 6%,…
A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: A couple will retire in 50 years; they plan to spend about $35,000 a year in retirement, which…
A: given information reirement period = 25 years spend in a retirement period for a year $35,000…
Q: Darlene wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium…
A: Answer with calculation are as follows:
Q: A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which…
A: Information: a) In part 1,we first have to calculate the present value of annual payments at time=50…
Q: Your uncle named you beneficiary of his life insurance policy. The insurance company gives you a…
A: Using excel rate function to calculate rate of annuity
Q: How many dollars would be the retirement pension if the person at the age of 65 wants to change…
A: Retirement planning is about forming plans in order to accomplish retirement expenses and retirement…
Q: A couple is saving for their newborn daughter’s college education. She will need $25,000 per year…
A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…
Q: A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn…
A: We need to calculate the persent value of annuity by using this formula. PV of annuity =CF*…
Q: You are the beneficiary of a life insurance policy. The insurance company informs you that you have…
A: The value of money changes with time. Therefore, the time value of money considers the value of…
Q: a 30-year-old female (a) a 20-year fixed rate policy and (b) a straight life policy. F) Estimate the…
A: E Given, Face Value - $125000 Age - 30 year Term - 20 year Fixed rate policy N= 12*20 = 240 months…
Q: If Carissa has a $140,000 home insured for $110,000, based on the 80 percent coinsurance provision,…
A:
Q: Tina Parker, a single mother, is 20 years old. She has called on you for an insurance consultation.…
A: Expenses- Expenses refers to the reduction in the value of owner's equity and opposite of revenue.…
Q: A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a…
A: Here, To Find: Future value of annual savings (FV) =? Annual withdrawals made for 20 years after…
Q: A 25-year-old engineer earning $65,000 per year wants to retire at age 55 with $2 million, and plans…
A: Since the annual interest rate is not given then we solve the problem by assuming the interest rate…
Q: Using the Human Life Value Method, how much life insurance does Carl need? Family Share of Earnings…
A: Human life value method-This is an universal accepted approach to establish the economic value of a…
Q: How much should you save at the end of each year from year 36 through 65 such that you have the…
A: Caclulate the present value of future withdrawals at t=66. This amount becomes the future value for…
Q: Bella is 23 years old and wants to invest money for her retirement. She wants to have $2,000,000…
A: A fixed amount of cashflow which occurs periodically for a certain or infinite period of time is…
Q: Calculate the annual premium for a 20 year old male seeking 5 year term insurance valued at…
A: Insurance valued = 120000 Term = 5
Q: man age 20 agrees to pay a life insurance company RM1200 at the end of each y ng as he lives. Using…
A: Present value of perpetuity can be calculated from the annual payment and value of interest rate.
Q: Tina Parker, a single mother, is 20 years old. She has called on you for an insurance consultation.…
A: Insurance is a contract between an insurer and an insured in which the insurer undertakes to…
Q: What will be his expected pension (a monthly allowance from the accumulated deposits) if the…
A: 1) Number of periods = 65 - 25 = 40 Number of periods = 40 * 12 = 480 Monthly rate = 3.6% / 12 =…
Q: A couple wants to retire in 35 years and can save $400 every month. They plan to deposit the money…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: nother year is 0.99786 based on data from the national registry agency. Calculate the insurance…
A: Solution: Let X be the amount paid by the company to settle the policy. Breakeven is nothing but…
Q: Tina Parker, a single mother, is 20 years old. She has called on you for an insurance consultation.…
A: Insurance is a contract between insurer and insured where insure agrees to compensate insured for…
Q: How much should annual premium payments be based on 3% annual interest and 1958 CSO mortality?
A: Based on the 1958 CSO mortality, life expectancy of a person (male or female) on average is 74…
Q: Marie's current salary as a Systems Engineer is $100,000 per year. She's planning to place 18% of…
A: The future value of an investment is calculated by multiplying the invested amount by 1+r factor for…
Q: For life insurance policies, some of the premium pays for the cost of the insurance, and the…
A: The annual percentage yield (APY) is the real rate of return earned on an investment, taking into…
Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 30 and…
A: Question is based on the concept of Annuity
Q: If a life insurance company insures 50 females age 25 for $40,000, 10- year term policies, how much…
A: The annuity payment formula is used to calculate the periodic payment on an annuity. An annuity is a…
Q: f Sarah’s retirement plan earns 5.75% compounded monthly, what amount will she have when she turns…
A: Future Value: It is the future worth of the investment or cashflows at a future point in time,…
Q: Your parents are planning to save for their retirement. A retirement plan is a financial arrangement…
A: The Future Value of the annuity refers to the sum value of all the payments which is occurred…
Q: You and your spouse are in good health and have reasonably secure careers. You make about $75,000…
A: The family need approach determines the amount of life insurance needed to cover the needs of the…
Q: Your rich uncle named you beneficiary of his life insurance policy. The insurance company gives you…
A: Amount today = 100,000 Annual payment = P12,000 Period = 12 Years
Q: To join an upscale country club, an individual must first purchase a membership bond for $20,000. In…
A: The present value of annuity refers to the present value of all the future payments of a series of…
Q: A couple will retire in 40 years; they paln to spend about $23,000 a retirement, which should last…
A: The stream or series of payments that are to be made at specific time intervals is known as annuity.…
Step by step
Solved in 2 steps with 2 images
- If a life insurance company insures 50 females age 25 for $40,000, 10- year term policies, how much would they expect to pay out?Solve0. Assume that upon graduation you make$63,500per year. What are the legally required costs for Social Security, Old-age, Survivors, and Disability Insurance, \& Medicare for the firm you work for in both dollar values and percentages? How much will you have to pay yourself? How much would you pay if you were self-employed earning the same amount?If Carissa has a $140,000 home insured for $110,000, based on the 80 percent coinsurance provision, how much would the insurance company pay on a $14,200 claim?
- A policyholder wishes to annuitize the cash value of her insurance policy at retirement. She desires an annual payment of $97.8,000 per year and the cash value is expected to be $1.5 million at retirement. Approximately how many payments can she expect to receive if annuity interest rates are 5.739 percent? (Do not round intermediate calculations. Round your answer to a whole number.)Tommy Cook is 19 years old and is interested in purchasing a whole life insurance policy with a face value of $80,000. a. Calculate the annual insurance premium for this policy. Note: Refer to the tables in the text for input data. Face value= Number of $1,000 = Rate per $1,000 = (whole life insurance, male -19) Annual premium = b. Calculate the monthly insurance premiums. Monthly percent Monthly premium = c. How much more will Tommy pay per year if he chooses monthly payments? Total of monthly payments = If paid monthly = More will be paidDarlene wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10-year policy? a $100 b. $108 C$1.202 d. $1.290
- After the birth of your first child, you decide to buy a life insurance policy for yourself but can't decide how much to buy. In the event of your untimely death, you estimate that the life insurance money can be invested in an account earning 8% interest compounded monthly. You would like your child to get a monthly payment of $1,500.00 for 18 years.How much should your life insurance policy be worth in order to achieve your goal? I should get a life insurance policy that is worth $_______You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $1,400 a month for 20 years. You can earn 6 percent on your money. Which option should you take and why?Find the expected net profit of an insurance company on a life-insurance policy whose death benefit is $1,000,000 if the annual premium for the policy is $2000 and the chance of the customer dying within the next year is 0.002. Interpret. (show work)
- 3. A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 6 percent on this savings. a. How much will she have accumulated if she retires at age 65?You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $400,000 today or receive payments of $16,000 a year for 15 years. You can earn 6 percent on your money. Which option should you take and why?Evan had three accounts as listed below. In 2020, how much was his total insurance coverage by the FDIC? • Bank A: $110,000 Bank B: $80,000 • Bank C: $315,000 Multiple Choice O $110,000 $190,000 O $315,000