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3 years ago

Annuity payout option allows the policyowner to choose a pre-determined number of benefit payments?

1 answer:

3 0

<span>The annuity payout option which allows the policyowner to choose a pre-determined number of benefit payments is known as an "Ă„nnuity Certain". A certain annuity is generally less expensive and provides a better return than a whole life annuity as there is some risk that the policy holder will outlive the payment stream, known as longevity risk.</span>

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Assume a $170,000 investment and the following cash flows for two products: Year Product X Product Y 1 $ 40,000 $ 60,000 2 60,00

Arturiano [62]

Answer:

a. Product X = 3.50 years

Product Y = 3.25 years

b. Product Y

Explanation:

The cash flows for the two products as well as the balance at the end of each year is given as follows:

$Initial\ balance = -170,000\\\\\begin{array}{ccccc}Year&Product\ X&Product\ Y& Balance\ X& Balance\ Y\\1&40,000&60,000&-130,000&-110,000\\2&60,000&70,000&-70,000&-40,000\\3&50,000&30,000&-20,000&-10,000\\4&40,000&40,000&20,000&20,000\end{array}$

For both products, the payback period is reached between the third and fourth year.

Product X:

$Payback = 3+\frac{20,000}{40,000} = 3.50\ years$

Product Y:

$Payback = 3+\frac{10,000}{40,000} = 3.25\ years$

Under the payback method, the alternative that presents the shortest payback period should be selected. Therefore, Product Y should be selected.

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3 years ago

One of the disadvantages of investing in real estate is A) investors need expert help. B) pyramiding. C) equity buildup. D) leve

mixer [17]

There are many disadvantages of investing in real estate and one of it is A) Investors need expert help.

<h3>What is Real estate?</h3>

The investment in property is known as real estate investment. There are many investors who invests in such assets, and earn rentals and capital gains.

The investment in real estate needs expert advice as the person who is the advisor should have the market information so that the perfect price can be quoted in order to purchase or sell an asset.

Learn more about Real Estate at brainly.com/question/27237569

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8 0

1 year ago

In order to determine if a home is fairly priced or not, it is important to look at the home's:

Charra [1.4K]

In order to determine if a home is fairly priced or not, it is important to look at the home's:

C. price per square foot.

4 0

2 years ago

Read 2 more answers

When calculating the maximum home price using either the front ratio or the back ratio, one result is the maximum monthly paymen

Oksanka [162]

Answer:A. Principal, interest, and escrow for taxes and insurance

Explanation: Front-end ratio is a percentage of your total annual gross income which can be dedicated to the payment of your home loan monthly.

Back-end ratio is a term used to describe the total percentage of your annual gross income which you can put into the servising of your debts.

The maximum monthly payment which a household can sustain covers the PRINCIPAL, INTEREST, AND ESCROW FOR TAXES AND INSURANCE When calculating the maximum home price using either the front ratio or the back ratio.

7 0

3 years ago

What is information that CANNOT be measured and expressed in numbers? Question 1 options: Personal Information Target Market Dat

Neporo4naja [7]

Answer:

Qualitative data

Explanation:

Qualitative data is one that is used to characterise and categorise attributed of a population, as such it does not involve the use of numbers.

For example sex, state of origin, citizenship, name, and so on.

On the other hand the other options can be expressed as numbers. That is Personal Information, Target Market Data, and Quantitative data.

Basically qualitative data is descriptive rather than quantitative

8 0

3 years ago