A general store in a remote community is an example of a geographic monopoly.
<span>If this key employee were to die and the policy is still in force and unchanged, the death proceeds will be directed with the Key Person Insurance. The company will purchase, owns, pays the premiums and is the beneficiary of the life insurance on the key person. This is because the key person is still employed in that company.</span>
Answer:
a. $66,889.63
b. $107,726.42
Explanation:
We use the Present value function that is to be reflected on the attachment
a. In the first case
Data provided in the question
Future value = $450,000
Rate of interest = 10%
NPER = 20 years
PMT = $0
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $66,889.63
b. In the second case
Data provided in the question
Future value = $450,000
Rate of interest = 10%
NPER = 20 years
PMT = $0
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $107,726.42