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Author Question: You have the opportunity to purchase an insurance policy for your newborn son. You must make the ... (Read 28 times)

tiara099

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on: Apr 25, 2021
You have the opportunity to purchase an insurance policy for your newborn son. You must make the payments shown in the table. After his fifth birthday no more payments are required. If your son reaches the age of 60, then the insurance company will pay him $90,000. Alternatively, you could invest the money in a savings account. Your banker promises to pay you interest at the rate of 8% for the first 5 years (from now until your son's fifth birthday), but only promises 4% every year after that. Should you buy the policy or invest in the savings account?

First birthday$600
Second birthday$650
Third birthday$700
Fourth birthday$750
Fifth birthday$800

◦ Yes, buy the policy.
◦ No, do not buy the policy.
◦ The policy and the savings account have the same future value.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by tiara099 on Apr 25, 2021

fwbard

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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tiara099

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

hramirez205

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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