Math

Advanced MathContemporary Mathematics for Business & ConsumersMary Hall purchased a $45,000 20-year endowment life insurance policy when she was 20 years old. She is now 35 years old and wants to look into her nonforfeiture options. As her insurance agent, calculate the value of Mary’s three options. a. Option 1 b. Option 2 c. Option 3BuyFind*arrow_forward*

8th Edition

Robert Brechner + 1 other

Publisher: Cengage Learning

ISBN: 9781305585447

Chapter 19, Problem 8AT

Textbook Problem

Mary Hall purchased a $45,000 20-year endowment life insurance policy when she was 20 years old. She is now 35 years old and wants to look into her nonforfeiture options. As her insurance agent, calculate the value of Mary’s three options.

**a.** Option 1 **b.** Option 2

**c.** Option 3

Expert Solution

**(a)**

To determine

**To calculate:** The value of Mary’s option 1 if she purchased a $45,000 20-Year endowment life insurance policy at the age of 20 years and her current age is 35 years.

**Given Information:**

Mary Hall purchased a $45,000 20-Year endowment life insurance policy at the age of 20 years and her current age is 35 years.

**Formula used:**

Steps to calculate the value of NONFORFEITURE option 1-cash value,

Step 1: Divide the face value of policy by $1,000 to calculate the number of $1,000 of insurance desired. And round to the nearest whole $1,000.

Step 2: From the table 19-3 locate the appropriate dollars per $1,000 in cash value column.

Step 3: Multiply the figure from step 2 with the number of $1,000 of insurance.

**Calculation:**

Consider the provided data,

The policy is a 20-Year endowment life insurance policy with a face value of $45,000

Expert Solution

**(b)**

To determine

**To calculate:** The value of Mary’s option 2 if she purchased a $45,000 20-Year endowment life insurance policy at the age of 20 years and her current age is 35 years.

Expert Solution

**(c)**

To determine

The value of Mary’s option 3 if she purchased a $45,000 20-Year endowment life insurance policy at the age of 20 years and her current age is 35 years.

Contemporary Mathematics for Business & Consumers

Show all chapter solutions

Ch. 19.I - Gary Foster, age 26, wants to purchase a 10-year...Ch. 19.I - Virginia Bennett purchased a $100,000.20-payment...Ch. 19.I - Norm Jaffe is evaluating his life insurance needs....Ch. 19.I - Calculate the annual, semiannual, quarterly, and...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...

Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Leroy Kirk is 35 years old and is interested in...Ch. 19.I - 16. Rene Boyer, age 27. wants to purchase a 5-year...Ch. 19.I - Carmen Gutierrez purchased a $75,000, 20-payment...Ch. 19.I - 18. Alex Baron is evaluating his life insurance...Ch. 19.I - Richard Ryan is evaluating his life insurance...Ch. 19.I - BUSINESS DECISION: THE CONSULTATION
20. Tina...Ch. 19.II - You are the insurance agent for Diamond...Ch. 19.II - A property insurance policy has an annual premium...Ch. 19.II - A property insurance policy has an annual premium...Ch. 19.II - Bravo Manufacturing, Inc., had property valued at...Ch. 19.II - Savoy International had multiple carrier fire...Ch. 19.II - Calculate the building, contents, and total...Ch. 19.II - Calculate the building, contents, and total...Ch. 19.II - Calculate the building, contents, and total...Ch. 19.II - Calculate the building, contents, and total...Ch. 19.II - Calculate the building, contents, and total...Ch. 19.II - Calculate the building, contents, and total...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - You are the insurance agent for Castle Mountain...Ch. 19.II - A property insurance policy has an annual premium...Ch. 19.II - 22. Insignia Enterprises has a property insurance...Ch. 19.II - Hi-Volt Electronics had multiple carrier fire...Ch. 19.II - BUSINESS DECISION: BUSINESS INTERRUPTION INSURANCE...Ch. 19.III - Jeff Wasserman, owner of High Performance Racing...Ch. 19.III - Jody Burnett has automobile liability insurance in...Ch. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - 9. Rick Clinton wants to purchase an automobile...Ch. 19.III -
10. Howard Marshall’s Corvette was hit by a palm...Ch. 19.III - Ben Hoffman has motor vehicle liability insurance...Ch. 19.III - BUSINESS DECISION: INSURING THE FLEET
12. The...Ch. 19 - A mechanism for reducing financial risk and...Ch. 19 - 2. The amount of protection provided by an...Ch. 19 - 3. Name the two major categories of life...Ch. 19 - The _____ factor is a small surcharge added to the...Ch. 19 - The options available to a policyholder upon...Ch. 19 - 6. The difference between the total living...Ch. 19 - 7. List four perils covered by property insurance....Ch. 19 - 8. List the four factors used to determine the...Ch. 19 - The premium charged when a policy is canceled by...Ch. 19 - The clause in a property insurance policy...Ch. 19 - 11. Write the coverage ratio formula used in...Ch. 19 - 12. A situation in which a business is covered by...Ch. 19 - In motor vehicle insurance, ____covers bodily...Ch. 19 - In motor vehicle insurance, companies often...Ch. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Calculate the value of the nonforfeiture options...Ch. 19 - Calculate the value of the nonforfeiture options...Ch. 19 - Tommy Cook is 19 years old and is interested in...Ch. 19 - 8. Mary Hall purchased a $45,000 20-year endowment...Ch. 19 - Joe Moutran is evaluating his life insurance...Ch. 19 - Calculate the building, contents, and total...Ch. 19 - Calculate the building, contents, and total...Ch. 19 - Calculate the building, contents, and total...Ch. 19 - Calculate the short-term premium and refund for...Ch. 19 - Calculate the short-term premium and refund for...Ch. 19 - Calculate the amount to be paid by the insurance...Ch. 19 - Calculate the amount to be paid by the insurance...Ch. 19 - 17. You are the insurance agent for Fandango...Ch. 19 - 18. “Movers of the Stars" has been contracted by...Ch. 19 - La Belle Beauty Supply had property valued at...Ch. 19 - Pinnacle Manufacturing has multiple carrier fire...Ch. 19 - As an insurance agent, calculate the annual...Ch. 19 - As an insurance agent, calculate the annual...Ch. 19 - As an insurance agent, calculate the annual...Ch. 19 - 24. Karen Doyle wants to purchase an automobile...

Find more solutions based on key concepts

Show solutions Basic Computation: Finding Probabilities In Problems 31-50, let z be a random variable with a standard normal d...

Understanding Basic Statistics

Solve the equations in Exercises 126. 14x2=0

Applied Calculus

Finding Derivatives In Exercises 2940, find the derivative of the function. y=x2+6x7

Calculus: An Applied Approach (MindTap Course List)

Brunt, Rhee, and Zhong (2008) surveyed 557 undergraduate college students to examine their weight status, healt...

Statistics for The Behavioral Sciences (MindTap Course List)

For problems 27-54, simplify each of the numerical expressions. Objective 2 and 3 (23)2+5(23)4

Intermediate Algebra

A rectangular walkway in front of an office building has a perimeter of 150 ft. If the length equals 45 ft more...

Elementary Technical Mathematics

In Exercises 1-8, find the indicated limit by first plotting the graph of the function in a suitable viewing wi...

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Briefly explain how increasing sample size influences each of the following. Assume that all other factors are ...

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Evaluate the integrals in Problems 1-32.
16.

Mathematical Applications for the Management, Life, and Social Sciences

(a) Use Stokes Theorem to evaluate c F dr, where F(x, y, z) = x2z i + xy2 j + z2 k and C is the curve of inter...

Multivariable Calculus

Regard y as the independent variable and x as the dependent variable and use implicit differentiation to find d...

Single Variable Calculus: Early Transcendentals, Volume I

Simplify each expression in Exercises 1730, expressing your answer in positive exponent form. (xy1z3)2x2yz2

Finite Mathematics and Applied Calculus (MindTap Course List)

In Exercises 15 and 18, construct angles having the given measures. 45 and then 105 HINT:

Elementary Geometry For College Students, 7e

In Exercises 1 to 20, let U = {1, 2, 3, 4, 5, 6, 7, 8}, A= {2, 4,6}, B = {1, 2,5,8}, and C = {1, 3, 7}. Find ea...

Mathematical Excursions (MindTap Course List)

Integer Zeros All the real zeros of the given polynomial are integers. Find the zeros, and write the polynomial...

Precalculus: Mathematics for Calculus (Standalone Book)

Determine whether the statement is true or false. If it is true, explain why. If it is false, explain why or gi...

Single Variable Calculus

Finding a Limit In Exercises 71-76, find each limit. (a) limx0f(x+x,y)f(x,y)x (b) limy0f(x,y+y)f(x,y)y f(x,y)=1...

Calculus: Early Transcendental Functions

GER Twenty-five residents of a community for senior citizens were asked to keep track of the number of hours th...

Essentials Of Statistics

Convert each expression in Exercises 25-50 into its technology formula equivalent as in the table in the text. ...

Finite Mathematics

Use polar coordinates to find the limit. If (r,) are polar coordinates of the point (x,y) with r0, note that r0...

Calculus (MindTap Course List)

Show that sin-1(tanh x) = tan1(sinh x).

Calculus: Early Transcendentals

Individuals A and B begin to play a sequence of chess games. Let S = {A wins a game}, and suppose that outcomes...

Probability and Statistics for Engineering and the Sciences

A particle moves along a straight line with displacement s(t), velocity v(t), and acceleration a(t). Show that ...

Single Variable Calculus: Early Transcendentals

Escape Velocity To escape Earth's gravitational field, a rocket must be launched with an initial velocity calle...

Calculus of a Single Variable

Give the exact value of each of the following: sec23

Trigonometry (MindTap Course List)

Annuities When an employee receives a paycheck at the end of each month. P dollars is invested in a retirement ...

Calculus: Early Transcendental Functions (MindTap Course List)

a. If R is a commutative ring with unity, show that the characteristic of R[ x ] is the same as the characteris...

Elements Of Modern Algebra

Which is the graph of ?

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

Find an iterated integral for where S is the surface r(u, v) = u2i + v2j + uvk, 0 ≤ u ≤ 1, 0 ≤ v ≤ 1, and F(x,...

Study Guide for Stewart's Multivariable Calculus, 8th

An oil refinery has storage tanks in the shape of right circular cylinders. Each tank has a height of 16 ft and...

Elementary Geometry for College Students

In Exercises 1-4, find the nth term of arithmetic progression that has the given value of a, d, and n. a=5, d=3...

Finite Mathematics for the Managerial, Life, and Social Sciences

Raise the following terms to the indicated powers and combine like terms where possible. (0.4d2t30.2t)2

Mathematics For Machine Technology

Using the Three-Dimensional Coordinate System In Exercises 13-24, determine the location of a point ( x, y, z) ...

Multivariable Calculus

Information Security Buzz provides news for the information security community. In an article published on Sept...

Introduction To Statistics And Data Analysis

Guy de Primo buys a car for 9837.91. He puts 10 down and obtains a simple interest amortized loan for the balan...

Mathematics: A Practical Odyssey

Practice Find the inverse of each matrix, if possible. [3423]

College Algebra (MindTap Course List)

Proof Prove that if f is differentiable on (,) and f(x)1 for all real numbers, then f has at most one fixed poi...

Calculus (MindTap Course List)

Suppose that a complex therapy procedure contains one component that has absolutely no effect on behavior. Expl...

Research Methods for the Behavioral Sciences (MindTap Course List)

A researcher who is interested in examining the eating behavior of adolescents records the number of calories c...

Research Methods for the Behavioral Sciences (MindTap Course List)

In Table 15.12 we provided estimates of the probability of using the coupon in the Simmons Stores catalog promo...

Statistics for Business & Economics, Revised (MindTap Course List)

The following observations are for two quantitative variables, x and y. a. develop a crosstabulation for the da...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

For the following exercises, each graph is of the form y=AsinBxory=AcosBx , where B >0. Write the equation of t...

Calculus Volume 1

If G and G’ are graphs, then G is isomorphic to G’ if, and only if, there exist a one-to-one correspondence g f...

Discrete Mathematics With Applications

3.4 SKILL BUILDING EXERCISES Using the Regression Line In Exercises S-1 through S-4, you are asked to provide i...

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)

Reliability of Delivery Service. The following data were used to construct the histograms of the number of days...

Essentials Of Statistics For Business & Economics

Auto Racing Helmet. Automobile racing, high-performance driving schools, and driver education programs run by a...

Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)

(a) Use (20) to show that the general solution of the differential equation xy + y = 0 on the interval (0, ) is...

A First Course in Differential Equations with Modeling Applications (MindTap Course List)

For the following exercises, find the exact area of the region bounded by the given equations if possible. If y...

Calculus Volume 2