Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Using the "Human Life Value" method, how much life insurance should you purchase if you have 45 years until retirement, an annual income of $65,100 received at the start of each years, and a time value of money of 9%? (Assume 80% income replacement, ignore taxes and inflation.)arrow_forwardFind the monthly house payment necessary to amortize the following loan. 9) In order to purchase a home, a family borrows $121,000 at 3.0% for 30 yr. What is their monthly payment? Round the answer to the nearest cent.arrow_forwardYour rich uncle dies, leaving you a life insurance policy worth $12 0,000. The insurance company also offers you an option to receive $8,225 per year for 25 years, with the first payment due today. You should choose the immediate payout if the interest rate is greater than a. 5.27% b. 5. 76% c. 7.75% d. 4.66%arrow_forward
- A yearly renewable term life insurance policy generally specifies that A) The policy owner may renew the policy only once B) Premiums shall increase every time the policy is renewed C) Evidence of insurability shall be required every renewal D) Cash values will increase for as long as the policy is in forcearrow_forwardAn insurance agent just offered you a new insurance product that will provide you with $1,959.20 13 years from now if you invest $400 today. What annual rate of interest would you earn if you invested in this product?arrow_forwardook ences Chris Seals has just given an insurance company $62,525. In return, she will receive an annuity of $7,458 for 12 years. a. At what rate of return must the insurance company invest this $62,525 to make the annual payments? (Use a Financial calculator to arrive at the answers. Round the final answer to 3 decimal places.) Rate of return b. What rate of return is required if the annuity is payable at the beginning of each year? (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Rate of returnarrow_forward
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