Net single premium for five-year term insurance policy

Assignment Help Financial Management

Reference no: EM131328388

Assume that you are asked to explain how premiums for a life insurance policy are calculated. Based on the information below, answer the following questions.

A. Compute the net single premium for a five-year term insurance policy in the amount of $1000 issued to a male at age 30.

B. Compute the net annual level premium for the same policy as in part (a).

C. Is the net annual level premium for the actual premium paid by the policyholder? Explain.

Reference no: EM131328388

Questions Cloud

Did you have any orientation about customs and traditions : Did you have any orientation (including personal research) about the customs and traditions of that country?

What is the value of the proposed new product investment : Based on Stanley's analysis, what is the value of the proposed new product investment?- How can Stanley explain the value found in part (b) to the CFO, who is unfamiliar with the concept of real options?

Cash flow to the nearest dollar : Lennon Inc., is considering a new project whose data is as follows: Sales revenues: $22,750, Depreciation: $9,000, Other operating costs: $13,500, and a tax rate of 45%. What is the project's Year 1 cash flow to the nearest dollar?

What is the true value of tech industries proposed : Based on the information provided, what is the true value of Tech Industries's proposed new production line?- What recommendation would you give Tech Industries regarding the proposed new production line? Explain.

Net single premium for five-year term insurance policy : Assume that you are asked to explain how premiums for a life insurance policy are calculated. Compute the net single premium for a five-year term insurance policy in the amount of $1000 issued to a male at age 30. Compute the net annual level premium..

Compare the operating leverage of two companies : Compare the operating leverage of Toyota Motor Corp. (ticker: J:TYMO) with that of Nissan Motor Company Limited (J:NR@N), using financial information from the last five years.

What is the equity beta of the levered firm : An unlevered firm has an asset market beta of 1.5. The risk-free rate is 3%. The equity premium is 4%. What is the firm’s cost of capital? The firm refinances itself. It repurchases half of its stock with debt that it issues. Assume that this debt is..

Which company do you expect will have the higher beta : Which company do you expect will have the higher beta? Check the reported betas on Thomson ONE to see if they match your expectations.

How does beta of intel today compare to its earlier estimate : How does the beta of Intel today compare to its earlier estimate from May 2008? Was its beta stable (over time)? How does the beta of AMD today compare to its earlier estimate from May 2008? Was its beta stable? AMD is a much smaller firm than Intel...

User Account

All Pages