# Fin- Management

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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 20-year period?

• Fin- Management -

\$5.17

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