Asked by Shani Montes Victorio on Jun 09, 2024
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A client, age 26, is planning to purchase a $100,000, 20-payment life policy and is deciding whether to pay quarterly or semiannually. Compute the amount the client would save during her lifetime by choosing semiannual payments. Refer to Table 12-1. (1 year = 12 months.)
Semiannual Payments
Payments made twice a year, often used in the context of loan repayments or interest calculations.
Quarterly Payments
Payments made every three months during a fiscal year, often used for taxes, insurance, or interest payments.
Life Policy
An insurance contract that pays a designated beneficiary a sum of money upon the death of the insured person.
- Calculate insurance premiums, including annual, semiannual, and quarterly payment plans.
- Consider the monetary influence of distinct insurance choices on individuals insured as time progresses.
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Learning Objectives
- Calculate insurance premiums, including annual, semiannual, and quarterly payment plans.
- Consider the monetary influence of distinct insurance choices on individuals insured as time progresses.
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