AnswersMathematical Models with Applications - MA4072 CRCumulative Exam — Cumulative examQuestion 45
45
RCMultiple Choice
Cumulative Exam — Cumulative exam
Question 45 • Mathematical Models with Applications - MA4072 CR
A 50-year-old male purchased a 20-Year Endowment insurance policy at the age of 40.The face value of the policy was $85,000. He asks his insurance agent for a reduced paid up insurance nonforfeiture option. Given the table below and the permanent insurance amount of $48.20 per thousand, determine the reduced paid up insurance value and the annual premium.
Answer
A
Annual Premium of $4,097.00; Reduced Paid Up option of $47,770B
Annual Premium of $4,500.00; Reduced Paid Up option of $35,785C
Annual Premium of $4,625.00; Reduced Paid Up option of $70,890D
Annual Premium of $4,821.00; Reduced Paid Up option of $85,000