A universal life policy is issued to a life aged 45. Death benefit is 10,000 and the policyholder pays an annual premium of 200 at the beginning of each year. Expense charges are 30% of first year premium and 5% of renewal premiums. Interest credited is 6% per year and interest assumed in the cost of insurance is 4% per year. Cost of insurance is based on Makeham's mortality, µ̟ =0.01+0.0001(1.05*). The account value at the beginning of the 7th year, before any premium is paid, is 1,500. Calculate, to the nearest integer, the account value at the end of the 7th Year.
A universal life policy is issued to a life aged 45. Death benefit is 10,000 and the policyholder pays an annual premium of 200 at the beginning of each year. Expense charges are 30% of first year premium and 5% of renewal premiums. Interest credited is 6% per year and interest assumed in the cost of insurance is 4% per year. Cost of insurance is based on Makeham's mortality, µ̟ =0.01+0.0001(1.05*). The account value at the beginning of the 7th year, before any premium is paid, is 1,500. Calculate, to the nearest integer, the account value at the end of the 7th Year.
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.59TI: New grandparents decide to invest 3200 per month in an annuity for their grandson, The account will...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning