uppose you are faced with several options of a signing contract. Which option would you choose? Assume 12% annual percentage rate (APR) with monthly compounding Option A: You will receive $20,000 every month from 1st month until 6th month No payment on the 7th month $30,000 every month from 8th month until 12th month Option B: you will receive a one-time payment at the end of year 1 of $280,000 Option C: you will receive $23,000 at the end of every month for 12 months Option D: you will receive $22,500 at the beginning of every month for 12 months Solve using financial calculator

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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.