FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- 1. How much total money would you have spent out of pocket with each plan? 2. With each plan, how much total money would you have to spend before the insurance coverage pays 100% of your medical costs?arrow_forwardf. Insurance: You are still not done allocating your paycheck. Assume that you pay annually 0.5% of your home value in home insurance. You also pay $1,000/year in auto insurance, $2,500/year in medical and dental insurance, and $350 / year in life insurance. What is your monthly payment for these deductions?arrow_forwardPresent value. Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg. The policy will pay out $200,000 on your 85th birthday. You must buy the policy on your 62nd 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?arrow_forward
- (Click on the into a spreadsheet.) Annuity B C Premium paid today $24.098.32 $22,274.30 $31,240.13 $30,150.95 Annual benefit $3,200 $4100 $4,000 $4,200 Life (years) 20 10 15arrow_forwardHe also wants to know how the portion of the home payment that comprises interest changes over the years assuming he takes out an FRM.arrow_forwardSuppose you have just graduated from college and are deciding on a career. Two career options, along with your expected salary in each of three earning periods, are displayed in the table below. Assume that any career will last only three periods before retirement. Occupation Pediatrician Teacher Period 0 Period 1 Period 2 4 5 20 2 4 5 Calculate the net present value (NPV) of your lifetime eamings should you choose to pursue a career in pediatrics if your discount factor 8 = 0.7 Please round your answer to 1 decimal placearrow_forward
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