Question

Susan Williams purchased $80,000 of whole life. What will the cash value of her policy be at the following anniversary dates?

Answer 1

Answer:

5 year  = $2,400

20 year = $18,560

Step-by-step explanation:

Firstly,

You have to identify the cash value per unit. so It 'll be  5 years = 30 dollars per unit.

Secondly,

Now, take the face value of the policy divided by 1000, to find how many units the person has. 80,000 divided by 1000 is 80. Now take the # of units time the cash value it has. so It'll be 80 times 30 is $2,400

Answer: $2,400

                                                                                                             

Now,

Just like the previous one identify the cash value per unit. so It'll be 20 years= 232 dollars per unit.

Next,

take the face value of the policy divided by 1000, to find how many units the person has. 80,000 divided by 1000 is 80. Now take the # of units time the cash value it has. 80 times 232 is $18,560

Answer:  $18,560