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Problem:

You are offered a $10,000 life insurance policy with thirty annual premium payments of $126 each.

Question: What is the future value of the payments that you will have made after the policy is paid up, assuming the insurance company can earn 6% on invested capital? The first payment will be made in one year. Please provide step by step solution and show all work.

A. $5,912

B. 15,450

C. 11,322

D. 7,432

E. 9,961

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91145804

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