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kumpel [21]
4 years ago
9

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

Business
1 answer:
WINSTONCH [101]4 years ago
3 0

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.

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Why can some taxes that appear to be regressive in terms of current income be thought of as progressive from a lifetime tax inci
lara [203]

Answer:

The description is outlined in the clarification segment below, as per the case provided.

Explanation:

  • The prevalence of either a lifetime tax on some kind of fixed income has been known to be a long-term perspective including its broader economic impact of taxation since they complement instead of just replace.
  • The existing income taxes would raise the quarterly funds to meet, but perhaps the cumulative occurrence of tax would enhance the power to charge for existence.  

5 0
3 years ago
Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost
Tcecarenko [31]

Answer:

The depreciation cost of the bus per unit is $ 1.4 which is purchased on January 1, 2019.

Explanation:

The depreciation cost per unit is computed as:

Depreciable asset = Cost - Salvage Value

                               = $205,860 - $7,900

                               = $197,960

Depreciation per unit = Depreciable asset /Useful life expected value

                                    = $197,960 / 141,400

                                    = $1.4

Therefore, the per unit cost is $1.4

8 0
3 years ago
Suppose you want to play a carnival game that costs 7 dollars each time you play. If you win, you get $100. The probability of w
lilavasa [31]

Answer:

The correct answer would be $5

Explanation:

The formula to use is "Expected return to player" which is

E(x) = x.p(x)

where x is the return to player if they win

and p(x) is the probability of winning.

So here,

x = $100 (return to player for winning)

p(x) = 1/50 (probability of winning)

Therefore expected return to player is

E(x) = x.p(x)

= $100 x 1/50

= $100/50

= $2

Cost: $7

Expected return to player is $2.

Therefore Loss (to player) is Cost minus Expected return

= $7 - $2 = $5 <---- expected value for the carnival to gain,

The loss to the player is the carnival's gain. It's $5.

8 0
3 years ago
Read 2 more answers
Which of the following is an indicator of how much output the average person would get if all output were divided up evenly amon
Effectus [21]

Answer:

C. per capita  GDP

Explanation:

Per capita income is the average income earned per person in a country during a specified period of time . It is the measure of a country's Gross domestic products against its total population.

Per capita GDP is a measure of a country's economic output that accounts for its number of people. It divides the country's gross domestic product by its total population.  it a good measurement of a country's standard of living. It tells you how prosperous a country feels to each of its citizens.

It is calculated by dividing the total GDP of a country by its population

therefore going by the question and the explanation given the best possible answer is C. Per capita GDP

5 0
3 years ago
a truck costs $35,000 with a residual value of $2000. its service life is five years using the declining balance method at twice
Sveta_85 [38]
What grade is this???
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