Annual Cost Of The Life Insurance Policy Economic Assignment Help

Scholars pursuing economic study grasp a lot about concerns that affect our daily lives. This incoporates matters such as tax and inflationary pressure, interest rates as well as wealth, inequality and developing markets, and energy and the domain making it a complex subject for many students.



9. The yearly payment on the new 30-year, $75,000 mortgage is $7,300. This assumes one payment is made at the end of each of the next 30 years. Suppose that payments must be made at the end of each month. Would 12 of these monthly payments be equal to one of the yearly payments? Explain.

NOTE: No calulations are necessary here.

10. Exhibit 3 suggests that the annual cost of the life insurance policy is $3,052. With the adjustments mentioned in the case, Comer calculated the cost to be $5,152 in year 1 and $18,632 by year 20 assuming a 7 percent annual return. Explain how these were determined.



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