For a fully discrete whole life insurance of 100,000 on (45): (i) whole life annuity on 45, a45 = 14.85 (ii)i= 0.06 Calculate the annual net premium.

Q: What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is…

A: Number of Payment = n = 10Payment = p = $2700Interest Rate = r = 5.5%

Q: A special fully continuous whole life insurance pays a benefit of 1000 plus a refund of all premiums…

A: Solution- Givenμ=0.01δ=0.05

Q: An annuity pays $14 per year for 45 years. What is the future value (FV) of this annuity at the end…

A: > Given:> Rate of interest per annum = 9%> Amount of each deposit = 14> Number of years…

Q: (Related to Checkpoint 6.4) (Present value of a perpetuity) What is the present value of a $240…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: What is the PV of an ordinary annuity with 10 payments of $7,800 if the appropriate interest rate is…

A: Present value of ordinary annuity is computed as follows:-PV= A*wherePV= Present value of ordinary…

Q: What is the PV of an annuity due with 5 payments of $5,700 at an interest rate of 6.1%?   a.…

A: The objective of the question is to calculate the present value (PV) of an annuity due. An annuity…

Q: Calculate the annual premium for the following policy. (Use Table 20.1.)       Amount of coverage…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Question 1 Saved An annuity with periodic payments made at the end of each payment period is called…

A: Annuity refers to a contract that is made between the insurer and the insurance company in which a…

Q: 8. Ordinary annuity payment. Fill in the missing annuity values in the following table for an…

A: Ordinary annuity is a series of payments made at the end of each period at equal intervals of time.

Q: Find the annual premium

A: INTRODUCTION: When sales comprise both single premium and regular premium business, annual premium…

Q: Calculate the present value of an annuity due given the following information: number of periods =…

A: The present value of an annuity due is the current value of a series of payments or cash flows…

Q: What is the PV of an ordinary annuity with a $5,700 duwterly payment for 5 years if the appropriate…

A: We need to use present value of ordinary annuity formula to calculate value of PV of annuity.wherePV…

Q: Consider a five-year fixed - payment security that has a present value of $1,500. If the annual rate…

A: Present value of annuity payment = wherePresent value = $1500 (given)A = Periodic payment = payment…

Q: Future value of an ordinary annuity. Fill in the missing future values in the following table for an…

A: Future value of an annuity refers to the value of a periodic payment or accumulated amount after…

Q: future value

A: Future value is the value of money or asset in the future. It is very important to investors and…

Q: (using ordinary general annuities) Convert an annuity with quarterly payments of $ 20,000 to one…

A: The regular periodic payments made at each periodic interval indicate the annuity payments. The…

Q: present value of a perpetual annuity? Seleccione una:

A: Perpetuity is defined as the series of fixed payments made each year for an indefinite period of…

Q: 8. Ordinary annuity payment. Fill in the missing annuity values in the following table for an…

A: Annuity is the regular payment made from an investment for particular period at a specific interest…

Q: Assuming annual interest rates on comparable investments are 3,5%. What annual income could be…

A: Interest Rate= 3.5% Time Period of Annuity = 25 years Savings invested in annuity = 140,000

Q: You are given: - Premiums are calculated using the equivalence principle. - Mortality follows the…

A: The annual benefit premium for a 30-years 1000 on (35) Pa35 = 1000 A135 + P(IA)135 Pa35 = P(IA)135 =…

Q: If the future value of an ordinary, 7-year annuity is $6,200 and interest rates are 6 percent,…

A: Ordinary annuity refers to the annuity in which the movement of cash should be made at the end of…

Q: An insurer needs to make the following annuity payments to an individual: £445 paid at the end of…

A: To calculate the present value of the annuity payments, we need to discount each payment back to the…

Q: An annuity with payments that occur at the beginning of each period is known as a O annuity due…

A: Annuities are series of constant cash flow that are being paid at regular interval of time and these…

Q: For each of the following annuities, calculate the annuity payment. Note: Do not round intermediate…

A: An annuity payment is a series of equal periodic cash flows or payments made at regular intervals,…

Q: A perpetuity pays $85 per year and costs $3,580. What is the rate of return? Select the correct…

A: Given:Annual Payment = $85Cost of the Perpetuity = $3,580

Q: Calculate the future value of an annuity, with case A being an ordinary annuity and case B being an…

A: Annuities - Annuities are the agreements and contracts that promise periodic and regular payments or…

Q: What is the present value of a $500 ordinary annuity at an interest rate of 6% for 5 years? Select…

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: Principal Rate Mode of Payment Monthly Monthly Semi-annually Semi-annually Semi-annually Term 1.…

A: Future value of an annuity can be calculated using the FV Function in excel. Present value of an…

Q: Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise…

A: As per the time value of money concept Value of the today's money is more important than the money…

Q: Annuity A has a present value of $100,000 and makes 20 payments.  Annuity B has a present value of…

A: Annuity refers to the contract between two parties for the purpose of insurance in which regular…

Q: An annuity pays $12 per year for 47 years. What is the future value (FV) of this annuity at the end…

A: Annuity paid per year = $12Discount rate = 7%Number of years = 47 years

Q: Calculate the future value of the following annuities, assuming each annuity payment is made at the…

A: Annuity paymentsAnnual ratesInterest compoundedPeriod invested1$3,700.007.00%Semi-annually9…

Q: what is its present value?

A: Today’s worth of dollars at a later date is the Present Value of the dollar. For example, the value…

Q: Annuity A pays 1 at the beginning of each year for five years. Annuity B pays 1 at the beginning of…

A: Macaulay Duration is a weighted average of the maturities of all the income streams of a bond or a…

Q: Rank the following from highest present value to lowest present value. Assume all else equal. v An…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Complete the ordinary annuity. (Please use the following provided Table.) (Do not round intermediate…

A: Semi annual payment amount (P) = 12,700 Period = 9 Years Number of semi annual payments (n) = 9*2 =…

Q: You are given the following information about a person aged exactly x: 9x = 0.03, 9x+1 = 0.04, 9x+2…

A: The expected present value is used to find out the value of an investment based on the concept of…

Q: Find the value of A so the two cash flows below are equivalent for an interest rate of 10%…

A: Interest rate (r) = 10% per annum = 2.5% per quarter We need to equate present values of both the…

Q: Complete the ordinary annuity. (Do not round intermediate calculations. Round your final answer to…

A: We need to use future value of ordinary annuity formula given below to calculate value of ordinary…

Q: Complete the information below using Ordinary Simple Annuity. R= P4,120 An = Sn = t = m = 12 i =…

A: Ordinary annuity is regular payments  towards an investment or towards loan repayment or any other…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.