Question

Julia Baker died, leaving to her husband Chris an insurance policy contract that provides that the...

Julia Baker died, leaving to her husband Chris an insurance policy contract that provides that the beneficiary (Chris) can choose any one of the following four options. Money is worth 2.5% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables

(a) $55,560 immediate cash.

Present value

b. 4,090 every 3 months payable at the end of each quarter for 5 years.

Present value
(c) $19,460 immediate cash and $1,946 every 3 months for 10 years, payable at the beginning of each 3-month period.
Present value $
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

So Need to sekect Option 3 giving higest Present Value

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Julia Baker died, leaving to her husband Leon an insurance policy contract that provides that the...
Julia Baker died, leaving to her husband Leon an insurance policy contract that provides that the beneficiary (Leon) can choose any one of the following four options. Money is worth 2.5% per quarter, compounded quarterly. Compute Present value if: (a) $59,630 immediate cash. (b) $4,110 every 3 months payable at the end of each quarter for 5 years. (c) $19,170 immediate cash and $1,917 every 3 months for 10 years, payable at the beginning of each 3-month period. (d) $4,110...
Julia Baker died, leaving to her husband Morgan an insurance policy contract that provides that the...
Julia Baker died, leaving to her husband Morgan an insurance policy contract that provides that the beneficiary (Morgan) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if: $4,120 every 3 months payable at the end of each quarter for 5 years. 19,470 immediate cash and $1,947 every 3 months for 10 years, payable at the beginning of each 3-month period $4,120 every 3 months for 3 years and...
Problem 6-5 Julia Baker died, leaving to her husband Leon an insurance policy contract that provides...
Problem 6-5 Julia Baker died, leaving to her husband Leon an insurance policy contract that provides that the beneficiary (Leon) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables (a) $55,240 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $ 55240 (b) $4,090 every 3 months payable at...
Grandma Jonesy died, leaving to her Grandson Bart, an insurance policy contract that provides that the...
Grandma Jonesy died, leaving to her Grandson Bart, an insurance policy contract that provides that the beneficiary (Bart) can choose any one of the following four options. (a)        $200,000 immediate cash.             (b)       $12,000 every 3 months payable at the end of each quarter for 5 years.             (c)        $50,000 immediate cash and $5,000 every 3 months for 10 years, payable at the beginning of each 3-month period.             (d)       $12,000 every 3 months for 4 years and $3,750 each...
Longstreet died, leaving an insurance policy to his heir, Stuart. The contract provides that the beneficiary...
Longstreet died, leaving an insurance policy to his heir, Stuart. The contract provides that the beneficiary can choose any one of the following four options: A) $550,000 immediate cash B) $40,000 every three months, payable at the end of each quarter for five years C) $180,000 immediate cash and $18,000 every three months for ten years, payable at the beginning of each three-month period D) $40,000 every three months for three years and $15,000 each quarter for the following twenty-three...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $6. Based on actuarial tables, "Joltin' Joe" could expect to live for 31 years after the actress died. Assume that the EAR is 11.4 percent. Also, assume that the price of the flowers will...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $4. Based on actuarial tables, "Joltin' Joe" could expect to live for 37 years after the actress died. Assume that the EAR is 11.4 percent. Also, assume that the price of the flowers will...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $6. Based on actuarial tables, "Joltin' Joe" could expect to live for 28 years after the actress died. Assume that the EAR is 11.4 percent. Also, assume that the price of the flowers will...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $6. Based on actuarial tables, "Joltin' Joe" could expect to live for 35 years after the actress died. Assume that the EAR is 11.4 percent. Also, assume that the price of the flowers will...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $5. Based on actuarial tables, "Joltin' Joe" could expect to live for 35 years after the actress died. Assume that the EAR is 11.4 percent. Also, assume that the price of the flowers will...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT