Austin borrowed $700 from a lender that charged simple interest at a rate of 9% for 6

Cash values within an ordinary straight whole life insurance policy _______ over time.

WINSTONCH [101]

Answer:

Increase

Explanation:

Whole Life Insurance Policy represents a life insurance policy that runs through the lifetime of the insured based on either the payments of pre-determined premiums or arrival at the date of maturity. The policy which is also referred to as 'straight or ordinary life' represents a contract between the insured and the insurer. The insurer pays the guaranteed sum or cash values to the insured's beneficiaries at the death of the insured or maturity of the policy.

As compared to another type of life insurance which is the termed life insurance, <u>Whole Life Insurance should provide increasing cash values overtime on the policy</u>. This is because aside the fixed cash value which goes along with the premium the insured pays regularly there is the accumulation of interest credited by the insurer based on pre-agreed terms to the cash value which is to be paid at maturity. The advantage as well as the fact that the tax treatment of these credited interests is quite favourable as they are tax-free. This benefit accumulates when insurance is greater than ten to fifteen years.

Hence, the cash value of the whole life insurance policy is expected to <u>increase</u> over time as a result of the accumulation of tax-free interests/dividends along with side the predetermined cash value.

3 0

4 years ago

Tanner-UNF Corporation acquired as an investment $260 million of 5% bonds, dated July 1, on July 1, 2021. Company management is

nordsb [41]

Answer:

Tanner-UNF Corporation

a. Journal Entry

July 1, 2021:

Debit Investment in Bonds $260 million

Credit Discount on bonds $60 million

Credit Cash $200 million

To record the acquisition of bonds.

December 31, 2021:

Debit Cash $6.5 million

Debit Discount on bonds $0.5 million

Credit Interest Revenue $7 million

To record cash received from bond investment and amortization of the bond discount for the semi-period.

b. Debit Unrealized Bonds Investment Loss $45 million

Credit Investment in Bonds $45 million

To record the unrealized loss on the investments.

Explanation:

a) Data and Calculations:

July 1, 2021:

Face value of bonds = $260 million

Interest rate = 5%

Market interest rate = 7%

Payment for the bonds = $200 million

Discount on bonds = $60 million

December 31, 2021:

Semi-annual interest cash receipts = $6.5 million ($260m * 2.5%)

Semi-annual interest revenue = $7 million ($200m * 3.5%)

Amortization of bonds discount = $0.5 ($7 million - $6.5 million)

Fair value of bonds = $215 million

3 0

3 years ago

All countries benefit from trade. If they did not, they would not trade. Based on this week's Reading Assignment, apply what you

jarptica [38.1K]

The idea of international trade is one of the factors that binds the world together. Trade between nations fosters peace and brings about, wealth creation, Cultural diffusion and inclusiveness.

<h3>What is International trade?</h3>

International trade refers to the exchange of goods, services and other commodities between countries of the world.

International trade is possible because, goods and services produced in one country is needed by citizens of other countries.

The idea of international trade is beneficial to both countries involved in such trade. It creates a long supply chain starting from manufacturers, logistics, middle men, and local traders.

This supply chain created benefits both the sellers and the buyers and this creates employment opportunities in both countries.

It is important to note that not everyone within a country may benefit directly from international trade, however, it can be said that everyone will benefit indirectly because the proceeds from such trade affects the GDP of both countries and this brings about prosperity especially when trade is not one sided.

Learn more about International trade at brainly.com/question/15115779

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8 0

1 year ago

A professional mentor should be used for guidance on which of the following?

lisabon 2012 [21]

Answer:

Answer:

1. The development of a mentee's resume

2. Improving of a mentee's presentation skills

Explanation:

8 0

3 years ago

. Tiger Mfg. owns a manufacturing facility that is currently sitting idle. The facility is located on a piece of land that origi

klasskru [66]

Answer: $1,200,000

Explanation:

The firm should include $1,200,000 as the cost of the Manufacturing facility for a new project in it's analysis.

This is because $1,200,000 is the opportunity cost of not selling the facility. The old costs that were incurred for the land and the facility are to be considered sunk costs as they have already been incurred and the only relevant cost now is what the market will pay for the facility which is $1,200,000.

3 0

4 years ago