i need the answer quickly 3. The proceeds of a 10,000-death benefit are left on deposit with an insurance company for sevenyears at an annual effective rate of 3%. The balance at the end of seven years is paid to thebeneficiary in 120 equal monthly payments of X, with the first payment made immediately.During the payout period, interest is credited at an annual effective interest rate of 5%. CalculateX.A. 117B. 118C. 129D. 135E. 158

Monthly payment of accumulated value is treated as an annuity payment for a fixed period.

3. The proceeds of a 10,000-death benefit are left on deposit with an insurance company for seve years at an annual effective rate of 3%. The balance at the end of seven years is paid to th beneficiary in 120 equal monthly payments of X, with the first payment made immediately During the payout period, interest is credited at an annual effective interest rate of 5%. Calculat A. 117 B. 118 C. 129 D. 135 E. 158

3. The proceeds of a 10,000-death benefit are left on deposit with an insurance company for seve years at an annual effective rate of 3%. The balance at the end of seven years is paid to th beneficiary in 120 equal monthly payments of X, with the first payment made immediately During the payout period, interest is credited at an annual effective interest rate of 5%. Calculat A. 117 B. 118 C. 129 D. 135 E. 158

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A life insurance company issues a whole life annuity immediate with annual payments. The annuity is issued to (65). The annuity pays 50,000 at the end of each year for the life of the annuitant with the first payment being made at age 66. You are given: A single premium is paid to purchase this annuity. Mortality follows the Illustrative Life Table with i = 0.06. Assume that the single net premium, P, is 110% of the expected present value at issue of benefits. Calculate the probability that this policy will generate a profit using P.
A 6-year term insurance policy has an annual premium of $500, and at the end of 6 years, all payments and interest are refunded. What lump-sum deposit is necessary to equal this amount if you assume an interest rate of 2.5% compounded annually? (a) State the type. A.future valueB. ordinary annuity C.sinking fundD. present value of an annuityE.amortization (b) Answer the question. (Round your answer to the nearest cent.)
A death benefit on a life insurance policy can be paid in one of the following three ways: (i) A perpetuity of $250 at the end of each month (ii) $795.70 at the end of each month for n years (iii) One payment of $81,007 at the end of n years If each payment method produces the same present value for the death benefit, what is the present value of the death benefit? A. 48,300 B. 55,600 C. 61,900 D. 69,200 E. 78,500
8. Deposits of 1000 are placed into a fund at the end of each year for the next 25 years for the subsequent purchase of a perpetuity. Five years after the last deposit, annual payments commence and continue forever. If i = .09 then find the amount of each payment.
A perpetuity has payments of 1, 1.2, 1, 1, 3, 1, 1, 4. Payments are made at the end of each year. Assuming an annual effective interest rate of 5%, find the present value of the perpetuity. A B с D E 45 60 67 119 440 4
a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic Deposit $90 at the end of every six months Rate Time 4.5% compounded semiannually 35 years
If $417.00 is deposited at the end of each year for 6 years into an ordinary annuity earning 4.08% interest compound semiannually, construct a balance sheet showing the interest earning during each year and the balance at the end of each year. Assume this annuity rounds the interest and balance to the nearest penny at the end of each year.
In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the amount of time needed for the sinking fund to reach the given accumulated amount. (Round your answer to two decimal places.) $295 monthly at 5.8% to accumulate $25,000.
find the value of the annuity and the interest. round to the nearest dollar. Periodic deposit: $1000 at the end of each year Rate: 4.5% compounded annually Time: 6 years _________ A. $28,939; $22,939 B. $5,471; 529 C. $6,717; $717 D. $2,769; $3,231
An individual borrows $4,500 from the bank to be repaid in three equal annual installments, with the first installment to be paid one year after the loan amount is received. If interest on the loan is charged at a rate of 9 per cent per annum compounded annually, to the nearest dollar the annual installment is a. $1,259 b. $1,373 c. $1,778 d. $1,631
Determine the amount of the ordinary annuity at the end of the given period. (Round your final answer to two decimal places.) $800 deposited semiannually at 6.6% for 10 years.
A perpetuity paying $3, 000 at the beginning of each two years has the same present value as another perpetuity with level payments, this one having payments at the end of each three years. Express the level payment amount of the second perpetuity, P, as a function of the annual effective interest rate i.

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