Use of Financial Calculator TI BA II Plus Required

question 166

Multiple Choice

Use of Financial Calculator TI BA II Plus required. It is usually well known that the younger you are, the cheaper insurance is. Using your knowledge of annuities, what would the insurance premiums cost per year for a 20-year-old for an insurance policy in the amount of $100 000 to an age expectancy of 80? The current discount rate is 4 percent.

• A)$420
• B)$819
• C)$42
• D)$1410

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Definitions:

Postponement

A strategy in supply chain management that delays the final production or distribution of a product until customer orders are received to reduce inventory costs.

Higher

A term generally used to indicate a greater amount, level, or degree of something.

Associated Cost

Refers to the total expenses directly linked to a specific activity, product, or service.

Expected Profit

The forecasted amount of profit calculated from potential revenues minus anticipated costs.