a. The NewLife Insurance Company is offering an insurance policy that will give you and...
90.2K
Verified Solution
Link Copied!
Question
Finance
a. The NewLife Insurance Company is offering an insurance policy that will give you and your offspring $18,000 per year forever. If you require 6% return on investment the how much would you have to pay for the policy?
b. If in part a. above the cost of the policy was 360,000 what would you expect the interest rate to be for this to be a fail deal?
c. Youre considering to get a loan. Bank A charges 15% annually and Bank B charges 15.25% accrued semi-annually. Which bank has the lower effective rate of interest?
d. Payments are made on a 15 year annuity of $1500 at the end of each month. Calculate the present value if the interest rate is 11% compounded monthly for the first 7 years and 7 percent compounded monthly thereafter
Please provide explanation details with the formulas as well. Thank you
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
