An insurance company considers the present value of a 10-year term life insurance policy to be...

An insurance company considers the present value of a 10-year term life insurance policy to be $3,738. The premiums that the company collects are $55 at the beginning of every month for the 10 years. What monthly compounded nominal rate is implied in the calculation of the policy's value?

A lottery prize of $2,250,000 per year, payable at the beginning of every year for 20 years can also be collected as a single lump sum payment of $23,500,000. What effective annual rate was used in the calculation of this value?

CorBloc Ltd. is setting up a fund to pay back a $22,000,000 debt in 18 years. To accumulate this money they will make equal annual deposits at the beginning of each year into a fund earning 9% compounded quarterly. What will be the size of the annual deposits?

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ekkarill92 answered 1 year ago

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