ASAP Please

Shelly purchased a $50,000 nonparticipating whole life insurance policy. The annual premium was $1,278. The cash value of the policy after 10 years will be $13,740. Assume a 5% interest rate. What is the traditional net cost of this policy, per thousand per year, over the first 10 years the policy is in force?

Answers

Answer 1

The traditional net cost per thousand per year is $- 1.92 is the traditional net cost of this policy, over the first 10 years the policy is in force of insurance policy.

What is the traditional net cost?

The shortfall in the business between premium payments as well as the total of dividend plus the cash equivalent of the insurance constitutes the traditional net cost.

Total premium over 10 years

= 10 x Annual premium

= 10 x 1,278 = $12,780

Cash value = $13,740

Net over 10 year

= 12,780 - 13,740

= -960

Net cost per year

= - 960 / 10

= -96

$50,000 non-participating cost whole life insurance policy

Hence, the traditional net cost per thousand per year

= - 96 / 50,000 x 1,000

= - 1.92

Learn more about the traditional net cost, here:

https://brainly.com/question/28319983

#SPJ1


Related Questions

Other Questions
HELP FAST I AM BEING TIMED!The authors purpose in this passage is most likely todescribe how education led to discontent among enslaved peoplesexplain how reading equipped him to argue against slaveryacknowledge the people who taught him to readdiscredit the idea that slaveholders abide by moral truthsargue in favor of the practice of slavery in certain circumstances What could i use to extend this paragraph"Animal farm is an allegory about the 1917 Russian Revolution and the Soviet Union. Most of what the pigs use in Animal Farm to sway the other animals is propaganda, information that is misleading and used to have people think a cetain way." also is there a way to have better put this The nurse is caring for a patient who has been prescribed a saliva substitute . the patient asks why this medication is necessary. what would be the most appropriate response? According to the bohr model, what is the energy change in joules that occurs when an electron falls from the n = 4 to the n = 2 energy level in a hydrogen atom? An automobile purchased for $28,000 is worth $2500 after 5 years. Assuming that the car's value depreciated steadily from year to year, what was it worth at the end of the third year?The value 3 years after it was purchased is Under what circumstances might the plates of the earth stop moving? Help!!!6 divided by 2(1+2) how can we apply our knowledge about matter in our lives] The globalization of the world economy has resulted in a relative _____ in the dominance of u.s. firms in the global marketplace. The neurotransmitter that is involved in learning and memory and is a transmitter at muscles is ______. A client with a diagnosis of malabsorption syndrome exhibits a symptom of spastic muscle spasms. which electrolyte is responsible for this symptom? The group that held the most exalted [highest/respected] position in mexican society was? When 2.16g of mercuric oxide is heated, it decomposes to yield 2.00g of mercury and 0.16g of oxygen. which law is supported by this experiment? By 1820, how many free African Americans were there in the nation? 233,000 59,000 16,000 460,000 What unusual qualities and appliances does the house have? list 3 functions the house perform. Why do you think the plant cell has a square, rigid shape unlike the animal cell? 2. During an activity, a teacher labeled the following scenario as hypertonic. Is she correct? Why or why no%H015%solute80% HO% solute The sum of two numbers is -316. One number is 94 less than the other. Find the numbers Why is it important to keep the evidence-based therapy movement and research in perspective? True or false: osteocytes and osteoclasts develop from the same type of stem cell.