Round All Answers to Nearest Cent (As Appropriate) $\text { E. What is the cash value of policy in } D \text { at the end of } 10 \text { years? }$

question 119

Essay

Round all answers to nearest cent (as appropriate).
LIFE INSURANCE
Use tables in handbook (for females subtract three years)Calculate annual premium:
$\begin{array}{|l|l|l|l|}\hline\text { Face Value } & \text { Age \& Sex of Insured } & \text { Type of Insurance } & \text { Annual Premium } \\\hline \$ 108,000 & 21 \mathrm{M} & 5 \text {-Year Term } & \mathbf{A} \\\hline \$ 40,000 & 42 \mathrm{~F} & \text { Straight Life } & \mathrm{B} \\\hline 90,000 & 22 \mathrm{M} & \text { - } 0 \text {-Pay Life } & \mathrm{C} \\\hline \$ 120,000 & 32 \mathrm{~F} & \text { Straight Life } & \mathrm{D} \\\hline\end{array}$
$\text { E. What is the cash value of policy in } D \text { at the end of } 10 \text { years? }$

---

Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Endowment

In economics, an endowment is the total range of assets, including both physical goods and intangible elements like labor skills, that an individual or entity owns.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.