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- Tina Parker, a single mother, is 20 years old. She has called on you for an insurance consultation. Her objective is to purchase life insurance protection for the next 10 years while her children are growing up. Tina tells you that she can afford about $350 per year for insurance premiums. You have suggested either a 10-year term policy or a whole life policy. (a) Using Table 19-1, rounded to the nearest thousand, how much insurance coverage (in $) can Tina purchase under each policy? Hint: Divide her annual premium allowance by the rate per $1,000 for each policy. 10-year term policy $ whole life policy (b) If she should die in the next 10 years, how much more (in $) will her children receive under the term insurance? $Using Table 19-1 and Table 19-2 find the following premiums for a 10-year term life insurance policy with a face value of $30,000 for a 28-year-old male. A. Annual premium B. Semiannual premium C. Quarterly premium D. Monthly premium Life Insurance—Premium FactorsPremium Paid Percent of Annual PremiumSemiannually 52%Quarterly 26%Monthly 9%Questic Present Value of Annuity Not ye Annuity Years Interest Rate Compounding Due Marke $100.00 37 20.00% Weekly P Flac O a. $42,071,286.08 O b. $41,910,093.41 O c. $26,083.82 O d. $25,983.88 X N hp
- Find the annual premium for a 10-year level term insurance policy with a face value of $50,000 for a 35-year-old male using a non-tobacco rate. Use the given table. E Click the icon to view the data table Estimated annual premium = $(Type an integer or a decimal.)ABC Insurance offer term life insurance under the following terms: Guaranteed renewal Cover to age 75 Sum insured remains constant The indicative monthly premiums for $1 million coverage are as follows: Age 21 to 34 35 to 39 40 to 44 45 to 49 50 to 54 Non-smoker $101 $112 $148 $223 $387 Smoker $161 $225 $285 $485 $808 Why do the premiums increase as the age of the insured increases? In percentage terms, approximately how much more expensive is term life insurance for a smoker than a non-smoker? If the renewal of the policy was at the discretion of the insurer, would you expect the premiums to be higher or lower? Why? If the sum insured was indexed to CPI, would you expect the premiums to be higher or lower? Why? If the term of the insurance was to age 65 rather than age 75, would you expect the premiums to be higher or lower? Why? Andrea and her husband are both 45, non-smokers and considering term life insurance. Ashleigh…Estimated Annual Life Insurance Premium Rates per $1,000 of Face Value 10-Year Level Term 20-Year Level Term Female PREF 0.91 0.91 Age Age PREF NT 20 0.87 25 0.87 Male Female Male PREF NT 1.50 PREF NT NT 2.28 2.28 1.88 20 1.09 1.88 25 2.06 30 1.12 2.86 2.86 2.56 2.56 1.27 0.75 1.10 1.31 1.27 1.36 2.49 1.44 2.73 1.13 0.75 1.10 1.09 1.31 1.42 153 2.00 2.92 1.50 30 0.87 35 0.87 0.75 1.16 1.26 2.23 35 1.57 1.61 3.24 3.62 5.38 8.42 12.90 19.15 3.96 0.96 2.67 0.75 1.17 1.73 1.02 2.78 40 1.96| 3.78 2.93 40 1.49 1.00 1.38 1.72 2.98 55 2.95 5.61 12.48 2.27 4.44 8.33 55 5.38 2.36 3.73 5.99 1.26 3.77 5.57 8.02 11.45 16.74 45 50 2.03 3.76 2.69 5.33 8.08 1.51 2.12 4.08 45 2.23 1.75 5.78 50 3.45 2.59 4.40 6.66 60 4.61 9.07 20.07 3.46 6.95 12.57 60 8.46 15.15 29.14 6.17 10.36 9.52 Use the given table. Compare the annual life insurance premium of Jenny Davis who is 35 years old, and purchases a $265,000, 10-year level policy using a non-tobacco rate to the premium paid by Chloe Levine, her friend who…
- 7. A net premium of $41 payable for life will provide (x) with either $5,000 n-year term insurance followed by $1,000 whole life insurance after age x + n, or $3,000 n-year term insurance followed by $2,000 whole life insurance after age x + n. What is 1000 · Px ? A) 17.37 B) 17.47 C) 17.57 D) 17.67 E) 17.77Amount financed 18200 number of payments 72 monthly payment 425.08 finace charge 12405.76 whats the apr%Calculate the annual premium for the following policy. (Use Table 20.1.) Amount of coverage (face value of policy) Age and sex of insured Type of insurance policy Annual premium $200,000 42 (M) 20-payment life
- Annuity Years Interest Rate Compounding Future Value of Annuity 3 12.00% Weekly $85,000.00 a. $453.29 b. $468.69 O c. $484.42 O d. $451.51 hpPresent value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity:Crab Company is considering a project with an initial investment of $600,000 that is expected to produce cash inflows of $129,500 for ten years. Crab's required rate of return is 16%. (Click on the icon to view Present Value of $1 table.) E (Click on the icon to view Present Value of Ordinary Annuity of $1 table.) 14. What is the NPV of the project? 15. What is the IRR of the project? 16. Is this an acceptable project for Crab? 14. What is the NPV of the project? (Enter the factor amount to three decimal places, X.XXX. Round the present value of the annuity to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) Net Cash Annuity PV Factor Present (i-16%, n=10) Value Years Inflow 1- 10 Present value of annuity Investment Net present value