Maxwell Has a Life Insurance Policy with a Face Value

question 58

Multiple Choice

Maxwell has a life insurance policy with a face value of $250,000 and a cash value of $77,000.Maxwell was killed in an auto accident shortly after borrowing $56,000 from this policy.Assuming interest had been paid but no principal was repaid,how much would Maxwell's beneficiary receive?

• A)$117,000
• B)$173,000
• C)$194,000
• D)$250,000

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