BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

Solutions

Chapter
Section
BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

Calculate the value of the nonforfeiture options for the following life insurance policies.

Face Value Years in Cash Reduced Paid-U p Extended Term
of policy Force Type of Polio Value Insurance Years Days
10. 250,000 7 20-Year Endowment

To determine

To calculate: The value of the non-forfeiture options cash value, reduced paid-up insurance and extended term years or days for the provided life insurance, where the face value of policy is $250,000, years in force 7 and type of policy is 20years endowment.

Explanation

Given Information:

The provided life insurance is,

The face value of policy is $250,000, years in force 7 and type of policy is 20years endowment.

Formula Used:

The steps to calculate the various non-forfeiture options are as follows:

Step1: First calculate the number of $1000 of insurance by division of the face value of the policy by $1000 and rounding to the nearest whole $1000.

Numberof $1000=Facevalue of the policy$1000

Step2: Now there are three options:

Option I-Cash value: For this fix the appropriate dollars per $1000 in the Cash value column of the table 19-3 and multiply it by the number of $1000 of insurance.

Option II-Reduced Paid -Up Insurance: Determine the appropriate dollars per $1000 in the Reduced Paid -Up Insurance column of the table 19-3 and multiply it by the number of $1000 of insurance.

Option III-Extended Term: For this fix the length of time of new extended term policy in Years and Days column of table 19-3.

Calculation:

Consider that the face value of policy is $250,000, years in force 7 and type of policy is 20years endowment.

The face value of policy is $250,000.

Step 1: numberof$1000=facevalue of policy$1000

Substitute the value $250,000 as below,

numberof$1000=facevalue of policy$<

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 19 Solutions

Show all chapter solutions add

Additional Math Solutions

Find more solutions based on key concepts

Show solutions add

In the figure, find: a KHFJ b MJMH c KMJJMH d MKMH

Elementary Geometry For College Students, 7e

Perform the indicated operations: 34.148.716.5

Elementary Technical Mathematics

Radical Expressions Simplify the expression. 52. (a) x43+8x3 (b) 418rt3+532r3t5

Precalculus: Mathematics for Calculus (Standalone Book)

AVERAGE Cost The average cost per disc in dollars incurred by Herald Media in pressing x DVDs is given by the a...

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

Find the limit. limx0sin(x2)x

Single Variable Calculus: Early Transcendentals

True or False: If Tn(x) is the nth Taylor polynomial for f(x) centered at c, then Tn(k)(c) = f(k)(c) for k = 0,...

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

Explain the distinction between experimental and nonexperimental research strategies.

Research Methods for the Behavioral Sciences (MindTap Course List)