I believe the answer is: Variable Universal Life
Variable Universal Life is considered as a long-term policy because the clause could only be activated if the policy holder is deceased.
This type of insurance usually would separate the death policies account with the investment account in order to offer more flexibility for the holder.
Answer:
$2,650
Explanation:
For computation of retained earnings at the beginning of Year 2 first we need to find out the net profit which is shown below:-
Net profit = Revenue - Expenses
= $3,300 - $1,750
= $1,550
Retained earnings at the ending of Year 2 = Beginning balance of retained earning + Net profit - Dividend paid
$3,050 = Beginning balance of retained earning + $1,550 - $1,150
Beginning balance of retained earning = $3,050 - $400
= $2,650
Answer:
C. The economy experiences economic growth.
Explanation:
When the economy is already working on the production possibility frontier the economic agents are already employed and working on full optimization.
In case of economic growth the production possibility frontier shifts upward and results in producing more jam and bread.
Answer:
6.22%
Explanation:
Price of sandwich four years ago, Present value = $5.49
Price of sandwich, Future value = $6.99
It is given that the inflation has been assumed to be constant over these four years.
Inflation rate refers to the rate at which prices of the good increases from the previous level. In a simple language, if there is a rise in the price of the goods then this economy is experiencing a inflation.
Inflation rate:
= 1.0622487 - 1
= 0.0622487 or 6.22%
Therefore, the inflation rate is 6.22%
