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.

Understand the impact of corporate structure on liability and investment.

Identify the factors influencing the decision to undertake investment projects.

Examine the effects of economic cycles on investment levels.

Understand the concept of deindividuation and its effects on individual behavior within groups.

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Definitions:

Job Enlargement Approach

a job design method that increases the number of tasks an employee performs, aiming to reduce monotony and improve job satisfaction.

Group-based Incentive System

A reward system where incentives are given to a group of employees based on their collective performance.

Knowledge-based Pay Plan

A compensation strategy where employees are paid based on their skills, knowledge, and abilities, rather than their job title or position.

Skill Variety

The degree to which a job requires a variety of different activities that involve the use of a number of different skills and talents of the person performing the job.