An insurance company is offering a new policy to its customers. Typically the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday $ 800 Second birthday $ 800 Third birthday $ 900 Fourth birthday $ 900 Fifth birthday $ 1000 Sixth birthday $ 1000 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $350,000. If the relevant interest rate is 10 percent for the first six years and 7 percent for all subsequent years, is the policy worth buying?
Q: Answer is all option
A: Option c, "lower overall costs," is the most appropriate choice as the potential big advantage for a…
Q: Nikul
A: Part 2: Explanation:Step 1: Calculate the time to expiration for each subperiod.Step 2: Use the…
Q: Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the…
A: Step 1: Calculate Annual Cash FlowsA. Annual RevenuesThe company will generate annual revenues of…
Q: If Carissa Dalton has a $410,000 home insured for $320,000, based on the 80 percent coinsurance…
A: Calculation of amount paid by insurance company;Given, Value of home = $410,000 Insurance coverage…
Q: Factor Louisiana Gas and Power Short-term growth 0.36 per $ invested STOCK ($) Trimex Insulation…
A: Part 2: Explanation:Step 1: Analyze Short-term Growth: - Trimex Insulation: It has a short-term…
Q: An analyst has determined that the appropriate EV/EBITDA for Rainbow Company is 9.6. The analyst has…
A: The objective of the question is to calculate the value of equity for Rainbow Company using the…
Q: Problem 31-18 Credit policy Cast Iron Company, on each nondelinquent sale, receives revenues with a…
A: The key to solving this problem is to understand that Cast Iron Company should only extend credit if…
Q: ill be $77,000 in five years. The computer will replac ies are $122,000. The machine will also…
A: NPV Calculation with Excel FormulasThis scenario can be analyzed using Excel's Net Present Value…
Q: A fund manager has a portfolio worth $95 million with a beta of 1.16. The manager is concerned about…
A: The objective of the question is to determine the number of futures contracts the fund manager…
Q: Richard Rambo presently owns the Marine Tower office building, which is 20 years old, and is…
A: Let's analyze the situation step by step:Current Situation:Property purchase price: $830,400Loan…
Q: Ganado Europe (C). Using facts in the chapter for Ganado Europe, assume the exchange rate on January…
A: Step 1: Calculate the net worth at the original exchange rate (Exhibit 11.5)Using the original…
Q: Hint(s) Check My Work (All answers were generated using 1,000 trials and native Excel…
A: Step 1: Step 2: Step 3:
Q: Use the following information for Questions 6 to 10: A promissory note for $12,500 was written on…
A: Promissory notes are the financial instruments that has been issued in order to make payment at…
Q: am. 112.
A: Please comment down for any doubt. I hope my answer helps you.
Q: describe the ways in which cryptocurrency is exchanged as compared to the US dollar
A: Because of their unique characteristics, cryptocurrency and US dollars are traded quite…
Q: O Calculate the Annual Percentage Rate (APR) for each: a. One Lump Sum: Calculate the APR for a…
A: The Annual Percentage Rate (APR) for a $2000 loan with an 8% stated annual interest rate, when paid…
Q: Suppose Acme Manufacturing Corporation's CFO is evaluating a project with the following cash…
A: First, determine the initial cost of the project Before calculating the Net Present Value…
Q: Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity.…
A: : let's go through the calculations step by step for question one.**Turnbull Co.:**Given data:-…
Q: Which of the following statements is CORRECT? a. One defect of the IRR method versus the NPV is…
A: Option a: This option is incorrect because the IRR method does acknowledge the time value of money…
Q: State of Economy Recession Normal Boom Probability Rate of Return if State Occurs Stock A Stock B of…
A: The above answer can be explained as under -The excel table has been prepared as under -The excel…
Q: None
A: I hope you understand
Q: Interest Rate Parity Assume that interest rate parity holds and that 90-day risk-free securities…
A: 90-day forward rate = Current Spot rate * (1 + United States interest rate) / (1 + Germany interest…
Q: 23 July 2002 an article entitled “Investors Appreciate Dividends Again, See Them as Safer Bets in…
A: The recommendation to hold dividend-paying stocks during bear markets stems from their unique…
Q: Nikul
A: We will utilize the Capital Asset Pricing Model (CAPM) to determine the necessary rate of return and…
Q: Under a firm commitment agreement, Zeke, Company, went public and received $30.00 for each of the…
A: Step 1: The calculation of the flotation cost as a percentage of funds raised AB1Per share price $…
Q: d. The anticipated levels of sales are the following: Year Unit Sales 1 2,900 2 3,900 4,900 5,900 3…
A: Let's break down the problem step by step with more detailed explanation and relevant examples.1.…
Q: Ross is single with an adjusted gross income of $63,100, and he uses the standard deduction for…
A: To calculate Ross's tax liability, we first need to find his taxable income by subtracting the…
Q: woohoo corp paid a $3 dividend today and analysts expect this dividend to grow sustainably at 5%…
A: Step 1: The calculation of the present value of the dividend of year 5 (D5) AB1Dividend paid32Growth…
Q: Suppose you just purchased a 8 year, $1,000 par value bond. The coupon rate on this bond is 7%…
A: The objective of this question is to calculate the price of a bond given its par value, coupon rate,…
Q: At the beginning of 2012 investors had invested $25,000 of common equity in Grant Corp. and expect…
A:
Q: None
A: 2.The flotation costs of the new bonds would be 4% of the proceeds.Let the amount raised be Y.Then,…
Q: Fink Co. is interested in purchasing a new business vehicle. The vehicle costs $48,000 and will…
A: The objective of the question is to determine whether Fink Co. should purchase the new business…
Q: F2
A:
Q: 2. What is the proceeds (in millions) from the in-the-money options? (keep two decimals)
A: In the money option:An "in the money" option refers to a financial derivative where the current…
Q: 2. O'Brien Inc. has the following data: IRE = 5.00%; RPM = 6.00%; and b = 1.25. What is the firm's…
A: Step 1: Find the formula for cost of equity When calculating cost of equity based on CAPM, we use…
Q: is my response accurate
A: Referencehttps://www.sciencedirect.com/science/article/pii/B9780750661362500740
Q: Which of the following policies is most likely to be implemented during a period of economic…
A: The correct answer is B) Reduction in government spending.During a period of economic recession,…
Q: Schweser Satellites Inc. produces satellite earth stations that sell for $100,000 each. The firm's…
A: Dear student, below is the answer to your assignment: Part 2: Explanation:Step 1: Calculate the…
Q: Finance ABC is currently paying 7.5% fixed rate on S$10m. ABC can borrow at LIBOR. XYZ is paying…
A: Here,CompanyFixed RateFloating RateCompany ABC7.50%LIBORCompany XYZ9.50%LIBOR+0.8%Company ABC is…
Q: Derive the Karush-Kuhn-Tucker conditions for this Bid-price policy program (also shown in the image…
A: To derive the Karush-Kuhn-Tucker (KKT) conditions for the given bid-price policy program, let's…
Q: Use the following information for Questions 6 to 10: A promissory note for $12,500 was written on…
A: The promissory note is one of the financial instruments of debt nature where the one party agrees to…
Q: Nikul
A: Step 1: The calculation of the Weighted average cost of capital ABCD1SecurityMarket value…
Q: F2
A: Calculate the arithmetic and geometric average time-weighted rates of return as well as the…
Q: You deposit $10,000 today in a savings account that pays 5.5% interest, compounded annually. What is…
A: Future Value = Present Value*(1+Interest rate)^No. of periods Where,Present Value = $10,000Interest…
Q: The table below contains data on Fincorp Incorporated. The balance sheet items correspond to values…
A: Answers: Operating Activities:Net Income (from the income statement) = $4,400Add back depreciation =…
Q: Brummitt Corp., is evaluating a new 4 - year project. The equipment necessary for the project will…
A: Step 1: The calculation of the after-salvage value AB1Equipment cost $ 2,950,000.00 2Sales value $…
Q: Robinson Co. is interested in purchasing a new delivery vehicle so it can become a subcontractor…
A: Step-by-step analysis:The first step is to calculate the annual depreciation expense. The vehicle…
Q: A stock is expected to pay its first annual dividend in 3 years. The dividend is expected to stay…
A: 1. Calculation of PV of first stage dividends:To calculate the present value (PV) of the first-stage…
Q: What is the difference between industrial projects and a film company? The main difference between…
A:
Q: What could be the reasons for the difference in the performance for JIVAX and S&P 500? And what…
A: The JIVAX and the S&P 500 are two investing alternatives that are extensively followed; yet,…
Please Write SteP by Step Answer
Otherwise I give you DISLIKES !
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company. First birthday: Second birthday: Third birthday: Fourth birthday: $ 760 $760 $ 860 $ 860 $ 960 $ 960 Fifth birthday: Sixth birthday: After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $360,000 if the relevant interest rate is 12 percent for the first six years and 7 percent for all subsequent years, what is the value of the policy at the child's 65th birthday? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Child's 55th birthdayAn insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: 910 $910 First birthday: Second birthday: Third birthday: Fourth birthday: $ 1,010 $ 1,010 Fifth birthday: $ 1,110 Sixth birthday: $ 1,110 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $420,000. If the relevant interest rate is 11 percent for the first six years and 7 percent for all subsequent years, what is the value of the policy at the child's 65th birthday? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Child's 65th birthdayAn insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: Second birthday: Third birthday: Fourth birthday: Fifth birthday: Sixth birthday: $ 890 $ 890 Future value $ 990 $ 850 $ 1,090 $ 950 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $390,000. The relevant interest rate is 11 percent for the first six years and 7 percent for all subsequent years. Find the future value of the payments at the child's 65th birthday. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- An insurance company is offering a new policy to its customers. Typically the policy is bought by a parent or grandparent for a child at the child’s birth. For this policy, the purchaser (say, the parent) makes the following six payments to the insurance company: First birthday $ 910 Second birthday $ 910 Third birthday $ 1,010 Fourth birthday $ 850 Fifth birthday $ 1,110 Sixth birthday $ 950 After the child’s sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $410,000. If the relevant interest rate is 13 percent for the first six years and 7 percent for all subsequent years, what would the value of the deposits be when the policy matures? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child’s birth. The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: $ 820 Second birthday: $ 820 Third birthday: $ 920 Fourth birthday: $ 850 Fifth birthday: $ 1,020 Sixth birthday: $ 950 After the child’s sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $320,000. The relevant interest rate is 10 percent for the first six years and 7 percent for all subsequent years. Find the future value of the payments at the child's 65th birthday.An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: $950 Second birthday. $950 Third birthday: $1,050 Fourth birthday: $850 Fifth birthday: $1,150 Sixth birthday: $950 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $450,000. The relevant interest rate is 15 percent for the first six years and 7 percent for all subsequent years. Find the future value of the payments at the child's 65th birthday. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- An Insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The purchaser (say, the parent) makes the following six payments to the insurance company First birthday: Second birthday Third birthday: Fourth birthday Fifth birthday: Sixth birthday. $ 800 $800 $ 900 $ 900 Future value $1,000 $ 1,000 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $350,000. The relevant interest rate is 10 percent for the first six years and 7 percent for all subsequent years. Calculate the future value of the payments at the child's 65th birthday. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)6. An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: Second birthday: Third birthday: Fourth birthday: Fifth birthday: Sixth birthday: $800 $800 $800 $1,000 $1,000 $1,000 After the child's 6th birthday, no more payments are made. When the child reaches age 65, he or she receives $1,000,000. If the relevant interest rate is 15% for the first six years and 12% for all subsequent years, is the policy worth buying? Why?Insurance underwriting relies heavily on statistics to determine the amount of insurance premium to charge. The probability that a 25-year-old female will live another year is 0.99786 based on data from the national registry agency. Calculate the insurance premium an insurance company would charge to break even on a 1 year $0.5million term-life insurance policy?
- Assume that you have calculated: (a) premiums for life insurance policies and (b) payments to annuitants based upon an assumption that everybody dies before attaining age 101. Now you discover that a significant number of your policy owners are likely to live beyond age 101 and some will live to age 121. How will that affect your business?A patient's insurance policy states: Annual deductible: $300.00 Coinsurance: 70-30 This year the patient has made payments totaling $533 to all providers. Today the patient has an office visit (fee: $80). The patient presents a credit card for payment of today's bit. What is the amount that the patient should pay?Evan had three accounts as listed below. In 2020, how much was his total insurance coverage by the FDIC? • Bank A: $110,000 Bank B: $80,000 • Bank C: $315,000 Multiple Choice O $110,000 $190,000 O $315,000