Topic Test Answers

You are 25-year-old healthy male and interested in purchasing life insurance. Using the table, determine what the annual premium for a 20-Year Endowment insurance police, given that the face value of the policy is $89,753. If need be, round your answer to the nearest cent. a. $3,431.26 c. $3,322.66 b. $3,496.78 d. $3,381.00 Please select the best answer from the choices provided

You have found a home that you are interested in purchasing. Instead of a conventional loan, you agree to pay the premium for the private mortgage insurance (PMI), which finances 95% of the loan. The amount of the home is listed at $125,000. From the given information, determine the amount needed for the down payment to qualify for the PMI loan. a.$6,250c.$625b.$118,750d.$62,500

Use the following bond listing for Pacific Bell to answer the following: What is the coupon rate and maturity date for this bond? a. The coupon rate is 6; the maturity date is 2034. b. The coupon rate is ; the maturity date is 2034. c. The coupon rate is 6; the maturity date is 2099. d. The coupon rate is 6.55; the maturity date is in 5 years. Please select the best answer from the choices provided

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. a. Annual Premium of $4,097.00; Reduced Paid Up option of $47,770 c. Annual Premium of $4,625.00; Reduced Paid Up option of $70,890 b. Annual Premium of $4,500.00; Reduced Paid Up option of $35,785 d. Annual Premium of $4,821.00; Reduced Paid Up option of $85,000 Please select the best answer from the choices provided

What is meant by the term total installment price?a.cost of the productc.total interest paid on the loanb.total amount you end up payingd.amount you pay at the time of purchase