while not all life insurance policies are the same, which of the following types of life insurance policies do not have a saving
1 answer:
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Answer:
option (C) $1,353
Explanation:
Annual dividend paid = $1.25
Increase in dividend annually, g = 2%
Number of stocks to be purchased = 100
Rate of return, r = 12%
Price at the end of Year 3 =
here, n = 4 (after 3 years)
Price at the end of Year 3 =
or
Price at the end of Year 3 =
or
Price at the end of Year 3 = $13.53
Therefore,
Expected amount to be paid for 100 shares = $13.53 × 100 = $1,353
Hence,
the correct answer is option (C) $1,353