Calculate the Regular Refund for the Following Policy Canceled by the Insurance

question 147

Short Answer

Calculate the regular refund for the following policy canceled by the insurance company. $\begin{array}{lll}\text { Annual } & \text { Canceled } \\\text { Premium } & \text { After } & \text { Refund } \\\hline \$1,280 & \text {9 months } &\end{array}$

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Definitions:

Investments

Assets or items acquired with the goal of generating income or appreciation in value over time.

Net Present Value

A valuation method that calculates the present value of future cash flows generated by an investment, minus the initial investment cost.

Cash Flows

The movement of money into and out of a business, project, or financial product, considered essential for assessing the health and sustainability of an entity.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.