Author Question: A client, age 25, is considering purchasing a 20-payment life policy with annual payments. He wants ... (Read 39 times)

RODY.ELKHALIL

  • Hero Member
  • *****
  • Posts: 591
A client, age 25, is considering purchasing a 20-payment life policy with annual payments. He wants to know how much more he will have paid the insurance company in premiums per 1,00 . coverage during the 20-year period than he can borrow on the policy at the end of the 20 years. Compute how much more the client will have to pay per thousand.

Question 2

An insured 25 year old purchased a 50,000 . 20-year endowment policy with quarterly premiums. Ten years later he needed the maximum loan available on the policy. How much more had the insured paid in premiums than he could borrow on the policy?



mceravolo

  • Sr. Member
  • ****
  • Posts: 349
Answer to Question 1

72 per thousand more

Answer to Question 2

8,050
(14.30  50  4  10) - (411  50)



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

For a complete list of videos, visit our video library