Calculate the net cost of insurance
Course:- Financial Management
Reference No.:- EM131179105

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

Suppose you are 46 and have a $180,000 face amount, 14-year, limited-payment, participating policy (dividends will be used to build up the cash value of the policy). Your annual premium is $630. The cash value of the policy is expected to be $7,200 in 14 years. Using time value of money and assuming you could invest your money elsewhere for a 8 percent annual yield, calculate the net cost of insurance. UseExhibit 1-B. (Do not round intermediate calculations. Round time value factor to 3 decimal places and final answer to the nearest whole dollar.)

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
You want to deposit $X in your retirement account today. You plan to retire in 35 years and make your first withdrawal from your account (at time 35) of $100,000; you will mak
A 4-year 12% coupon bond has a yield of 10%. What are its Macaulay, Modified duration, and convexity? What is the actual price change, Modified Duration predicted and Modified
Daniel Wiener is trying to understand the factors that cause exchange rates to change. For each of the following scenarios, say whether the value of the dollar will appreciate
Volbeat Corp. shows the following information on its 2015 income statement: sales = $403,000; costs = $305,000; other expenses = $7,900; depreciation expense = $18,200; intere
Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,500,000. Also, at year-end 2015, current liabilities were $1,000,000,
For month ended 6/30/X1, there were 1,531 of direct labor hours incurred - Explain how would I begin creating a variable costing income statement and absorption statement?
We want to buy a 30 year, 5% bond, but we plan to sell it in 4 years. We estimate that the ytm at that time will be 7%. The market rates are 4% presently. What should we pay f
Bond Yields and Rates of Return A 25-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,100. The bond sells for $950. (A