Posted by KEVIN on Thursday, January 13, 2011 at 9:57am.
David purchased a $100,000 participating whole life policy. The annual premium is $2,280. Projected dividends for the first 20 years are $15,624. The cash value after 20 years will be $35,260. If the premiums were invested at 5 percent for 20 years, the premiums would grow to $79,156. If the dividends were accumulated at 5 percent for 20 years, they would grow to be $24,400. The amount to which $1 deposited annually will accumulate in 20 years at 5 percent is $34.719. Based on this information, what is the net payment cost per thousand per year of David's policy over the 20year period?

Fin Management  kevin, Sunday, December 15, 2013 at 7:15pm
$5.17
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