Looking for certain life insurance fund

Assignment Help Financial Management

Reference no: EM131935584

You deposit $12,000 annually into a life insurance fund for the next 40 years, after which you plan to retire.

a. What are the considerations when you are looking for a certain life insurance fund?

b. If the deposit is made at the beginning of the year and earn an interest of 7 percent, what will be the amount after the end of year 40?

c. You wish to receive annuities for the next 20 years (year 41 to 60). What is the annual payment you expect to receive at the beginning of the year if the interest is 7 percent in year 41 to 60?

d. Repeat step b and c with 8 percent interest and 6 percent interest and show the difference in terms of annual payment.

e. Would you personally invest into this kind of insurance fund? If not, what kind of investment are you interested in? Please explain why.

Reference no: EM131935584

Questions Cloud

What is the cost of equity from retained earnings : Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. what is the cost of equity from retained earnings?

Considering buying blow molding machine for operation : Kal Tech Engineering Systems is considering buying a blow molding machine for its operation in Tennessee.

What is jumbotron cash balance at the end of january : What is Jumbotron's cash balance at the end of January?

Financial crisis and afterwards gold prices skyrocketed : During the financial crisis and afterwards gold prices skyrocketed. Discuss why gold prices changed.

Looking for certain life insurance fund : What are the considerations when you are looking for a certain life insurance fund?

Describes how you would put your portfolio together : describes how you would put your portfolio together, Is it a file you will be proud to contribute to over the years?

What is the total initial investment for new combine : What is after-tax cost of debt? What is the total initial investment for new combine? What is the NPV of new combine investment?

Buying equipment-What are the project NPV and IRR : Huskers Company is thinking of buying equipment.Revenues and other operating costs would be constant over project's 3-year life. What are project's NPV and IRR?

Role finance has in exacerbating business crises : How do the various theorists or schools of thought suggest that we frame our understanding of the role finance has in exacerbating business crises?

User Account

All Pages