Julia Baker died, leaving to her husband Henry an insurancepolicy contract that provides that the beneficiary (Henry) canchoose any one of the following four options. Money is worth 2.50%per quarter, compounded quarterly. Compute Present value if: Clickhere to view factor tables Correct answer. Your answer is correct.(a) $55,260 immediate cash. (Round factor values to 5 decimalplaces, e.g. 1.25124 and final answer to 0 decimal places, e.g.458,581.) Present value $Entry field with correct answer 55260 SHOWSOLUTION LINK TO TEXT LINK TO TEXT Correct answer. Your answer iscorrect. (b) $4,040 every 3 months payable at the end of eachquarter for 5 years. (Round factor values to 5 decimal places, e.g.1.25124 and final answer to 0 decimal places, e.g. 458,581.)Present value $Entry field with correct answer 62980 SHOW SOLUTIONLINK TO TEXT LINK TO TEXT Correct answer. Your answer is correct.(c) $19,160 immediate cash and $1,916 every 3 months for 10 years,payable at the beginning of each 3-month period. (Round factorvalues to 5 decimal places, e.g. 1.25124 and final answer to 0decimal places, e.g. 458,581.) Present value $Entry field withcorrect answer 68459 SHOW SOLUTION LINK TO TEXT LINK TO TEXTIncorrect answer. Your answer is incorrect. Try again. (d) $4,040every 3 months for 3 years and $1,490 each quarter for thefollowing 25 quarters, all payments payable at the end of eachquarter. (Round factor values to 5 decimal places, e.g. 1.25124 andfinal answer to 0 decimal places, e.g. 458,581.) Present value$Entry field with incorrect answer 68894 LINK TO TEXT LINK TO TEXTIncorrect answer. Your answer is incorrect. Try again. Which optionwould you recommend that Henry exercise?
