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3 years ago

COMPARE AND CONTRAST WHOLE LIFE,VARIABLE LIFE AND TERM LIFE?

Business

2 answers:

LuckyWell [14K]3 years ago

6 0

Answer:

<h3>WHOLE LIFE: This policy covers the person for his entire life and then pays a cash revenue that is guaranteed for the investments made during the life of the owner of the policy. For this benefits to be obtained the person must pay a fixed high premium for it.</h3>

<h3>VARIABLE LIFE: This policy covers the person for the same period as the whole life insurance but the premium is not fixed as the cash revenue for investments is not guaranteed.</h3>

<h3>TERM LIFE: The term life insurance is set up for an pecific period the premiums are the lowest and persons won't collect any cash payments for revenues made out of investments at the end of the coverage of the policy</h3><h2 />

Sergeu [11.5K]3 years ago

3 0

Answer:

WHOLE LIFE: This policy covers the person for his entire life and then pays a cash revenue that is guaranted for the investments made during the life of the owner of the policy. For this benefits to be obtained the person must pay a fixed high premium for it.

VARIABLE LIFE: This policy covers the person for the same period as the whole life insurance but the premium is not fixed as the cash revenue for investments is not guaranted.

TERM LIFE: The term life insurance is set up for an especific period the premiums are the lowest and persons won't collect any cash payments for revenues made out of investments at the end of the coverage of the policy.

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On January 1, 2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years and an estimated salv

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Answer:

There is not gain in this operation so the answer is $0

Explanation:

There are some journal entries that needs to be done to have a full picture of the statement

* Purchase

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* Monthly depreciation

Since, the FA was depreciated during 8 years. Firstly you have to calculate the amount that can be depreciate on a monthly basis

Amount to be depreciated = (Cost of the FA - Salvage value) = (690.000-48.600) = 641.400

Then calculate the yearly depreciation

Yearly depreciation = ((amount to be depreciated/useful life) * years used) =

(641.400/10*8) = 513.120

then the journal entry to record the monthly depreciation for 8 years is

Depreciation expense 513.120

Acc Depreciation 513.120

* Post the Journal Entry to record the sell of FA

You have to reverse the Acc Depreciation and credit the FA

Cash 152.500

Fixed assets 690.000

Acc depreciation 513.120

Loss on sale of FA 24.380

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3 years ago

Alice is trying to save money, so she decides she’ll only buy renters insurance if and when something bad happens at her apartme

ahrayia [7]

Answer:

The correct answer is letter "D": Insurance companies will only cover losses suffered while the policy is already in place.

Explanation:

Regardless of the type of insurance you purchase, the purpose of the coverage is having a policy in case an unexpected unfortunate event takes place. <em>Insurances do not enroll individuals who need the policy just because of an ongoing accident</em>. Those individuals could enroll in an insurance plan but the ongoing accident will not be covered by the company. Only those events happening when the policy is already valid are subject to evaluation for coverage.

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3 years ago

Read 2 more answers

Following is information on an investment considered by Hudson Co. Assume the investment has a salvage value of $20,000. The com

zalisa [80]

Answer:

net present value is

$228,652.29-$200,000.00

=$28,652.29.

Explanation:

Net cashflows

Year 1= 100000

Year 2= 90000

Year 3= 95000 (75000+ 20000)

Totals= 285000

Present value at 12%

Formula for present value=

1/(1+r)^n

where r= interest rate

n= number of years

Year 1=1/(1+0.12)^1 =0.8929

Year 2=1/(1+0.12)^2= 0.7972

Year 3=1/(1+0.12)^3 =0.7118

Present value of net cash flows =

Present value × net cash flows.

Year 1= 0.8929 × 100000= $89,285.71

Year 2=0.7972 ×90000= $71,747.45

Year 3=0.7118×95000= $67,619.12

Totals = $228,652.29

Amount invested= $(200,000.00)

Net present value (NPV) is referred to as the difference between the present value of cash inflows and the present value of cash outflows over a period of time. Net Present Value is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.

Therefore, net present value is

$228,652.29-$200,000.00

=$28,652.29.

7 0

3 years ago