Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Related questions
Question
Calculate the annual premium for the following policy. (Use Table 20.1.)
|
Transcribed Image Text:TABLE 20-1
Five-year
Stralght
Twenty-
payment life
Twenty-year
Age
term
Age
life
Age
Age
endowment
Life insurance rates for males (for
females, subtract 3 years from the
age)?
20
1.85
20
5.90
20
8.28
20
13.85
21
1.85
21
6.13
21
8.61
21
14.35
22
1.85
22
6.35
22
8.91
22
14.92
23
1.85
23
6.60
23
9.23
23
15.54
24
1.85
24
6.85
24
9.56
24
16.05
25
1.85
25
7.13
25
9.9 1
25
17.55
26
1.85
26
7.43
26
10.29
26
17.66
27
1.86
27
7.75
27
10.70
27
18.33
28
1.86
28
8.08
28
11.12
28
19.12
29
1.87
29
8.46
29
11.58
29
20.00
30
1.87
30
8.85
30
12.05
30
20.90
31
1.87
31
9.27
31
12.57
31
21.88
32
1.88
32
9.71
32
13.10
32
22.89
33
1.95
33
10.20
33
13.67
33
23.98
34
2.08
34
10.71
34
14.28
34
25.13
35
2.23
35
11.26
35
14.92
35
26.35
36
2.44
36
11.84
36
15.60
36
27.64
37
2.67
37
12.46
37
16.30
37
28.97
38
2.95
38
13.12
38
17.04
38
30.38
39
3.24
39
13.8 1
39
17.81
39
31.84
40
3.52
40
14.54
40
18.61
40
33.36
41
3.79
41
15.30
41
19.44
41
34.94
42
4.04
42
16.11
42
20.31
42
36.59
43
4.26
43
16.96
43
21.21
43
38.29
44
4.50
44
17.86
44
22.15
44
40.09
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Periodic Payment Find the present value of the following ordinary simple annuity. Payment Interval Conversion Term $75 1 month 19 years, 7 months Interest Rate 7.5% Period monthlyarrow_forwardPresent value of an annuity Consider the following cases. Case ◄AUA- E Amount of annuity $ 12.000 55.000 700 140.000 22.500 Interest rate 12 20 5 10 Period (years) a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity, mu 9 7 b. Compare your findings in parts al 1) and a(2). All else being identical, which of annuity-ordinary or annuity due-is preferable? Explain why. Personal Finance Problem Tume value-Annuities - Marian Kirk wishes to select the better of two 10-year annuines, C and D. Annuity C is an ordinary annuity of $2,500 per year for 10 years. Annuity D is an annuity due of $2,200 per year for 10 years. delen future value of both annuities at the end of year 10, assuming thatarrow_forwardFind the future value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $3440 1 year 4 years 12% semi-annuallyarrow_forward
- What is monthly monthly mortgage insurance premium for following FHA mortgage during the first year of the loan: • Gross loan amount including up-front mortgage insurance premium: $180,000 • Average balance of base loan amount in first year: $178,416 Annual premium rate for FHA mortgage insurance (paid monthly): 0.85% (Input your answer rounded to the nearest whole penny and without the $ sign, e.g., 1000.01).arrow_forwardCalculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage applications. (Round your answers to two decimal places.) Applicant MonthlyGrossIncome MonthlyPITIExpense Other MonthlyFinancialObligations HousingExpenseRatio (%) TotalObligationsRatio (%) Emerson $2,900 $777 $290 % %arrow_forwardpm.4arrow_forward
- calculate the future value (in $) of the annuity due. (Round your answer to the nearest cent.) AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Valueof the Annuity $80 every month 2 1 2 6 monthly $arrow_forwardFind the installment price of a recliner bought on the installment plan with a down payment of $60 and six payments of $104.72. The installment price is $arrow_forwardFind the installment price of a recliner bought on the installment plan with a down payment of $70 and six payments of S107.88. The installment price is $arrow_forward
- Amount of annuity expected $900 Payment Annually Time 4 years Interest rate 6% Present value (amount needed now to invest to receive annuity) $3,118.59 Check the correctness of annuity payment by completing the following table. Note: Round the answers the nearest cent. Opening balance ces Interest Annuity Closing balance Year 1 Year 2 Year 3 Year 4 3,118.59arrow_forwardFind the term of the ordinary annuity in years and months (from 0 to 11 months). Payment Interval 6 months Future Value Periodic Rent $7928 $349 The term is year(s) and month(s). Interest Rate 5% Conversion Period semi-annuallyarrow_forwardCalculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage applications. (Round your answers t Monthly Gross Income Monthly PITI Other Monthly Financial Obligations Housing Expense Ratio (%) Total Obligations Ratio (%) Applicant Expense Emerson $2,900 $777 $290 %arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education