Calculate net cost of insurance

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Reference no: EM131906102

Suppose you are 46 and have a $310,000 face amount, 14-year, limited-payment, participating policy (dividends will be used to build up the cash value of the policy). Your annual premium is $1,085. The cash value of the policy is expected to be $12,400 in 14 years. Using time value of money and assuming you could invest your money elsewhere at an annual yield of 8 percent, calculate the net cost of insurance.

Reference no: EM131906102

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