Author Question: Which of the following statements about the traditional net cost method of measuring the cost of ... (Read 26 times)

biggirl4568

  • Hero Member
  • *****
  • Posts: 551
Which of the following statements about the traditional net cost method of measuring the cost of life insurance is (are) true?
 
  I. The traditional net cost method does not consider the time value of money.
  II. The traditional net cost method can show that life insurance has a negative cost.
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II

Question 2

Which of the following statements about the Linton yield is (are) true?
 
  I. It is based on the assumption that a cash-value policy can be viewed as a combination of insurance protection and a savings fund.
  II. It is the average compound annual rate of return required to make the savings deposits in a life insurance policy equal to the policy's guaranteed cash value at the end of a specified period.
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II



flannelavenger

  • Sr. Member
  • ****
  • Posts: 322
Answer to Question 1

Answer: C

Answer to Question 2

Answer: C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

For a complete list of videos, visit our video library