Lynn Calculated the Future Value of the First Twenty Premiums

question 48

Multiple Choice

Lynn calculated the future value of the first twenty premiums she will pay under her nonparticipating whole life insurance policy.Then she subtracted the cash value after 20 years.Next,she divided this value by the future value annuity due factor for 20 years to arrive at an annual cost of insurance.Finally,she divided the annual cost by the number of thousands of dollars of life insurance purchased to arrive at the cost per thousand per year.Lynn calculated the

• A)traditional net cost per thousand per year.
• B)the Linton Yield.
• C)the surrender cost per thousand per year.
• D)the net payment cost per thousand per year.

---

Definitions:

Coerced

Forced to act or think in a certain way through pressure or threats.

Self-evaluation Trap

A psychological state in which an individual's constant self-assessment leads to negative feelings and a decrease in motivation or self-worth.

Feedback

Information given to an individual or group about their performance or behavior with the intention of improving future actions.

Scientific Management

A theory of management that analyzes and synthesizes workflows with the objective of improving labor productivity and economic efficiency.