5
lesson pretestMultiple Choice

Pretest

Question 5 • Mathematics for Data and Financial Literacy

Dara, a 50 -year-old nurse, purchases a whole life insurance policy with a $⁢250,000 death benefit. The policy includes a cash value component that grows at a fixed interest rate of 4.5% annually. Dara contributes $⁢8,000 annually to the policy's cash value portion, and the accumulated cash value will continue to grow at the same 4.5% interest rate. What will the cash value portion be after 25 years? Use the formula cap A is equal to the fraction with numerator cap p times open paren open paren 1 plus r over n close paren raised to the n t power minus 1 close paren and denominator open paren r over n close paren

Answer
A
601 dollars comma 086 point 8 9
B
267 dollars comma 149 point 7 3
C
200 dollars comma 000 point 0 0
D
356 dollars comma 521 point 6 8
Previous
Next
Dara, a 50 -year-old nurse, purchases a whole…