Please Write SteP by Step AnswerOtherwise I give you DISLIKES ! An insurance company is offering a new policy to its customers. Typically the policy is bought bya parent or grandparent for a child at the child's birth. The details of the policy are as follows:The purchaser (say, the parent) makes the following six payments to the insurance company:First birthday $ 800Second birthday $ 800Third birthday $ 900Fourth birthday $ 900Fifth birthday$ 1000Sixth birthday $ 1000After the child's sixth birthday, no more payments are made. When the child reaches age 65, heor she receives $350,000.If the relevant interest rate is 10 percent for the first six years and 7 percent for all subsequentyears, is the policy worth buying?

For this particular problem we are going to use the future value formula: Future Value = PV…

Answered: An insurance company is offering a new…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter7: Tax Credits

Section: Chapter Questions

Problem 4MCQ

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An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: $910 First birthday: Second birthday: $ 910 Third birthday: $ 1,010 Fourth birthday: $ 1,010 Fifth birthday: $ 1,110 $ 1,110 Sixth birthday: After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $420,000. If the relevant interest rate is 11 percent for the first six years and 7 percent for all subsequent years, what is the value of the policy at the child's 65th birthday? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) > Answer is complete but not entirely correct. Child's 65th birthday $ 367,778.00 X
An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: 910 $910 First birthday: Second birthday: Third birthday: Fourth birthday: $ 1,010 $ 1,010 Fifth birthday: $ 1,110 Sixth birthday: $ 1,110 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $420,000. If the relevant interest rate is 11 percent for the first six years and 7 percent for all subsequent years, what is the value of the policy at the child's 65th birthday? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Child's 65th birthday
An insurance company is offering a new policy to its customers. Typically the policy is bought by a parent or grandparent for a child at the child’s birth. For this policy, the purchaser (say, the parent) makes the following six payments to the insurance company: First birthday $ 910 Second birthday $ 910 Third birthday $ 1,010 Fourth birthday $ 850 Fifth birthday $ 1,110 Sixth birthday $ 950 After the child’s sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $410,000. If the relevant interest rate is 13 percent for the first six years and 7 percent for all subsequent years, what would the value of the deposits be when the policy matures? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: $950 Second birthday. $950 Third birthday: $1,050 Fourth birthday: $850 Fifth birthday: $1,150 Sixth birthday: $950 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $450,000. The relevant interest rate is 15 percent for the first six years and 7 percent for all subsequent years. Find the future value of the payments at the child's 65th birthday. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
An Insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The purchaser (say, the parent) makes the following six payments to the insurance company First birthday: Second birthday Third birthday: Fourth birthday Fifth birthday: Sixth birthday. $ 800 $800 $ 900 $ 900 Future value $1,000 $ 1,000 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $350,000. The relevant interest rate is 10 percent for the first six years and 7 percent for all subsequent years. Calculate the future value of the payments at the child's 65th birthday. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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A patient's insurance policy states: Annual deductible: $300.00 Coinsurance: 70-30 This year the patient has made payments totaling $533 to all providers. Today the patient has an office visit (fee: $80). The patient presents a credit card for payment of today's bit. What is the amount that the patient should pay?
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
choose three major insurance companies, obtain the premiums of life insurance policies for a 30 year old man with $300, 000 insurance coverage (death benefit). Compare the premium for term, whole or universal life insurance. Prepare a premium table and indicate which policy you consider and why?
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