determine the function which can be used to compute annual premiums.

Q: For life insurance policies, some of the premium pays for the cost of the insurance and the…

A: Compound interest formula: Amount=Principal1+rnnt Company 1: pays 4.5% compounded monthly on the…

Q: An engineering company currently pays $18,175 a quarter for insurance. They pay on the 1st day of…

A: The quarterly interest rate will be the rate with equates the present value of the quarterly…

Q: A personal account earmarked as a retirement supplement contains $242,400. Suppose $200,000 is used…

A: You have asked multiple unrelated questions. They are not sub parts. Hence, only the first question…

Q: A personal account earmarked as a retirement supplement contains $292,400. Suppose $250,000 is used…

A: Annuity refers to the series of payment in equal interval of time for certain time period.  For…

Q: Peg Gasperoni bought a $50,000 life insurance policy for $300 per year. Ryan Life Insurance Company…

A: A finance charge is referred to as any cost that is related to the borrowing of funds, paying off…

Q: What is the annual insurance expense considering the following costs: Semiannual car insurance…

A: Insurance is agreement between insurer and insured where insurer agrees to compensate insured for…

Q: s out a loan with monthly payments of €500 for a period of four years with first payment made today.…

A: The given problem can be solved using PV function in excel. PV function computes loan amount for…

Q: Arrowood's Camera Store advertises a Canon Power Shot 3.34-megapixel camera for $300, including…

A: Simple interest is calculated using following formula on the principal Simple…

Q: The following payment plans are offered on the purchase of an appliance. P375 8 monthly payments of…

A: Given information : Particulars Option 1 Option 2 Option 3 Number of payments 1 8 6 Amount of…

Q: A company is offering a 4.9% discount to receivables if they agree to pay within 45 days. The…

A: A credit discount is a discount offered to the borrower of money by the lender of money if the…

Q: A car dealer advertises the sale of a car model for a cash price of P280,000.00. If purchased on…

A: Present value of an annuity: It is the value of all future payments at the present date at some…

Q: Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your…

A: Information Provided: Term = 30 years Loan = $193,000 Annual Interest Rate = 7.8% Annual tax bill =…

Q: Suppose you obtain a 30-year mortgage loan of $196,000 at an annual interest rate of 7.9%. The…

A: To find the monthly payment for the mortgage, Property tax and fire insurance for 30 year loan of…

Q: An insurance company offers a retirement annuity that pays 100,000 per year for 15 years, gorwing at…

A: An Annuity is a stream of regular periodic payments made or received for a specified period of time…

Q: You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly…

A: We can calculate the effective annual interest rate by applying the required formula taking the loan…

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

A: Calculation of the number of quarters until the balance of the account is $0 is as follows: Hence,…

Q: An insurance company has a simplified method for determining the annual premium for a term life…

A: An insurance company has a simplified method for determining the annual premium for a term life…

Q: A company sells each waterbottle for $ 10, the company tax rate is 25%. In order to increasing the…

A: This question is related to the finance in which company wants to increase their profit by providing…

Q: You have been awarded monthly payments of 2800 for 15 years as an insurance settlement ABC Finance…

A: Discount rate is the interest rate which is used to calculate the present value of future cashflows.

Q: For life insurance policies, some of the premium pays for the cost of the insurance, and the…

A: Here, To Find: Part A. APY (Annual Percentage Yield) =? Part B. Higher yield offered =?

Q: An engineering firm can pay for its liability insurance on an annual or monthly basis. If paid…

A: Effective interest rate=1+rnn-1

Q: A car can be purchased for 0% down for 60 months (in lieu of rebate). It has a sticker price of…

A: First let's define what is add on interest is Add on interest is a method of calculating the…

Q: An insurance company offers an annuity of 8 years with $1425 quarterly payments at $22000. Given…

A: in this we have to calculate rate of return on both investment and compare both.

Q: "A furniture store has an ad for a sofa set priced at $1600. The customer is offered the choice of…

A: A loan is an agreement between two parties where one party forwards an amount for it to be paid back…

Q: You want to buy a new sports car from Muscle Motors for $79,000. The contract is in the form of a…

A: Price of a new sports car is $79,000 Time period is 48 months Interest rate is 7.3% To Find:…

Q: A personal account earmarked as a retirement supplement contains $292,100. Suppose $250,000 is used…

A: We use NPER function to calculate no of quarters

Q: payday loan company charges a $40 fee for a $450 payday loan that will be repaid in 11 days using…

A: You need to understand 4 steps to calculate annual interest rate for pay day loan…

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: Let the required annuity be = n quarters To make the account 0 at the end of the annuity period, the…

Q: Live Forever Life Insurace Co. is selling a perpetuity contract that pays $1,000 monthly. The…

A: Calculate the monthly rate of return as follows:

Q: A dealer quotes a customer 7.35% to borrow for one year with interest paid monthly. The customer…

A: Here, The Interest Rate is 7.35% Compounding Period is Monthly Customer preference Compounding…

Q: For life insurance policies, some of the premium pays for the cost of the insurance, and the…

A: The annual percentage yield (APY) refers to the real rate of profit or return gained for a saving…

Q: What effective rate of return does the annuity investment earn?

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…

Q: Kelly Robins is considering purchasing a usedautomobile. The price including the title and taxes…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: A personal account earmarked as a retirement supplement contains $342,400. Suppose $300,000 is used…

A: Given data; annuity = $300,000 interest rate = 6% compounded quarterly payment amount = $6500…

Q: A life insurance company pays investors 4% compounded annually on its five-year GICs. For you to be…

A: In this question, The principal amount is the same and there are 2 types of compounding that differ…

Q: Arrowood's Camera Store advertises a Canon Power Shot 3.34-megapixel camera for $375, including…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Arrowood's Camera Store advertises a Canon Power Shot 3.34-megapixel camera for $300, including…

A: Given information: Principal amount is $300 Annual percentage rate is 4.7% Number of years is 1

Q: Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $81,000…

A: To determine the monthly interest on the annuity: Lump sum payment = $81,000 Annuity = $625 Period =…

Q: The total monthly payment for a home mortgage loan isaffected by the property tax and insurance.…

A:

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Anticipated annuity. An appliance store sells a refrigerator for $ 6,730 in cash or with 5 monthly…

A: Cash price of refrigerator (PV) = $ 6730 Number of monthly payments (n) = 5 Interest rate = 22.5%…

Q: A lender requires PMI that is 0.7% of the loan amount of $490,000. How much (in dollars) will this…

A: Working note:

Q: What is the total monthly payment with monthly private mortgage insurance (PMI) and escrows for the…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: Suppose you obtain a 30 year mortgage loan of 197,000$ at an annual interest rate of 8.1%. The…

A: Given Information: Mortgage loan = $197,000 Annual interest rate = 8.1% Annual property tax bill =…

Q: A​ washer-dryer combination can be purchased from a department store by making monthly credit card…

A: For calculation of purchase price we need to use the following formula of annuity due PV of annuity…

Q: A life insurance company will sell a 17-year annuity paying $1,200 at the end of each month for…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

Q: TY DUE: (please DON’T use excel) A sala set is bought for P2,500 down payment and P750 payable at…

A: Cash price today is the equivalent that is equivalent to the monthly payment and down payment that…