Insurance policy contract that provides that the beneficiary

Assignment Help Risk Management

Reference no: EM131490956

Julia Baker died, leaving to her husband Morgan an insurance policy contract that provides that the beneficiary (Morgan) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if: (a) $59,630 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

(b) $4,110 every 3 months payable at the end of each quarter for 5 years. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

(c) $19,170 immediate cash and $1,917 every 3 months for 10 years, payable at the beginning of each 3-month period. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

(d) $4,110 every 3 months for 3 years and $1,530 each quarter for the following 25 quarters, all payments payable at the end of each quarter. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Which option would you recommend that Morgan exercise?

Reference no: EM131490956

Questions Cloud

Major piece of new territory : Brainstorm/Scattershoot and then describe and explain (so name and tell how) the United States acquired each major piece of new territory between 1763 and 1850.

What products are sold in the companys international market : What products are sold in the company's international markets? Do they vary by country or by region? Is the company practicing global procurement?

Economic consequences of the geographic expansion : All questions below are based upon the following prompt: What were the economic consequences of the geographic expansion of the United States between 1763.

What was the change in its net debt position during period : Applying Cash Flow Relations (Easy) A firm reported free cash flow of $430 million and operating income of $390 million.

Insurance policy contract that provides that the beneficiary : Julia Baker died, leaving to her husband Morgan insurance policy contract that provides that beneficiary (Morgan) can choose any one of four options.

How was the free cash flow disposed of : Applying Cash Flow Relations (Medium) An analyst prepared reformulated balance sheets for the years 2012 and 2011 as follows (in millions of dollars).

African american history : In the past few weeks (and years) questions have been raised saying slavery was "on the way out" as an economic institution and the Civil War was unnecessary.

What factors contribute to understanding of written language : What factors contribute to our understanding of written language? Give examples and describe how comprehension of written language can be improved

African american history : Using the text and the internet, citing your work, with 300 words, craft an original response to this question:

User Account

All Pages