Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. please do not solve in exel may insurance compan

Please do not Solve in Exel MaY insurance company is offering a new...

50.1K

Verified Solution

Question

Finance

Please do not Solve in Exel

MaY insurance company is offering a new policy to its long-term customers. Typically, the policy is bought by a parent or grandparent for a child at the childs birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company:

First birthday: $ 800

Second birthday: $ 800

Third birthday: $ 900

Fourth birthday: $ 900

Fifth birthday: $1,000

Sixth birthday: $1,000

After the childs sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $150,000. If the relevant interest rate is 9 percent for the first six years and 5.5 percent for all subsequent years, is the policy worth buying?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The following times series shows the demand for a particular product over the past 10 months....

Statistics
Q

when describing muscle what does external and internal mean?

Medical Sciences
Q

President Trump has raised tariffs on steel and aluminum imported into the United States. Answer both of...

General Management
Q

Directional Selection 0 00 0 00 A C B Popula Original population Speed 1x Paused...

Biology
Q

Two identical air-filled parallel-plate capacitors C? and C2 are connected in series to a battery...

Physics
Q

Write the equation of the line with the given slope and the given y-intercept. Leave...

Basic Math
Q

Verify the identity 2 cos 3x sin x 2 sin x cos x 8 cos...

Algebra
Q

Anlisis e interpretacin de cuentas de capital e ingresos integrales A continuacin, se incluye la...

Accounting
Q

A taxpayer is the sole owner of a small corporation (C) that prepares tax returns....

Accounting
Q

Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it...

Accounting
Q

Course:International Accounting please answer correctly! 1. What is the...

Accounting
Q

Select one companys financial statements of your choice. Perform ratio analysis: - Credit risk analysis...

Accounting