An investor will receive an annuity of $4,500 a year for 15 years. The first payment is to be received five years from today. At a 12% discount rate, this annuity's worth today is closest to: A. $14,899. B. $18,216. C. $19,478. (11,052.2971) 16. If $1,000 is invested today at Bank Alfalah ltd and $1,000 is invested at the beginning of each of the next three years at 12% interest (compounded annually), the amount an investor will have at the end of the fourth year will be closest to: A. $4,779. B. $5,353. C. $6,792.

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A: We need to calculate payment per year and present value  An annuity is a periodic payment

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A: Effective annual rate is the rate of interest which is adjusted compounding over a given period.

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A: Annual payment (P) = $ 24000 Number of annual payments (n) = 25 Interest rate (r) = 8.5%

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Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.