Because the future value of annual premiums deposited in a mutual fund is 755 (F/A, 9%, 45) = $397,023.34, Then, the friend is correct since the mutual fund is roughly three times the sum under the Insurance policy.
<h3>Was Liam's
suggestion correct?</h3>
Generally, Premium payment is mathematically given as
X=60-20
X=45years
Where future value is
755 (F/A, 9%, 45)
In conclusion
755 (F/A, 9%, 45) = 755 * 525.8587
755 (F/A, 9%, 45) = $397,023.34
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Complete Question
Liam O'Kelly is 20 years old and is thinking about buying a term life insurance policy with his wife as the beneficiary. The quoted annual premium for Liam is $8.39 per thousand dollars of insurance coverage Because Liam wants a $90,000 policy (which is 2.5 times his annual salary), the annual premium would be $755, with the first payment due immediately (i.e., at age 21). A friend of Liam's suggests that the $755 annual premium should be deposited in a good mutual fund rather than in the insurance policy. "If the mutual fund earns 9% per year, you can become a millionaire by the time you retire at age 65," the friend advises.
Answer:
The inventory TO is 3.6875
Explanation:
where:
Considering there is not sufficient information to calculate the begining inventory <u>we are going to work only with the ending inventory </u>so:
The inventory TO is 3.6875 This means the company sales their inventory almost 4 times per year.
Answer:
b. the Federal Reserve System.
Explanation:
Initial margin refers to the deposit made by an investor with a broker, in order to open a margin account. The purpose of initial margin is security and collateral to ensure enough availability of cash in the trading account of the investor.
For instance an investor wants to purchase 4000 shares priced at 15$. In this case, he is supposed to deposit 50% of $60,000 i.e $30,000. The remaining $30,000 is contributed by the brokerage firm, regarded as borrowings on which the investor pays interest.
The initial margin limit is fixed by the Federal Reserve System.
Answer:
Customer support
Explanation:
Customer support offers various customer services to help customers in making cost effective and correct use of a product. Through customer support, customers requests and issues can be resolved through answering questions and providing help on onboarding, while collecting and storing data about those interactions
Answer:
an externality
Explanation:
Externality -
It is the cost or the benefit received by the third party , is known as externality .
The third party does not have any control over the creation of the cost or the benefit .
The externality can be negative as well as positive and can arise from the production or consumption of the services and goods .
hence , the correct term fro the given statement is an externality .
