On January 1, an insurance company has 115,000 which is due to Linden as a life insurance death benefit. He chooses to receive the benefit annually over a period of 13 years, with the first payment immediately. The benefit he receives is based on an effective interest rate of 8% per annum. The insurance company earns interest at an effective rate of 8.5% per annum. Every July 1, the 1.
On January 1, an insurance company has 115,000 which is due to Linden as a life insurance death benefit. He chooses to receive the benefit annually over a period of 13 years, with the first payment immediately. The benefit he receives is based on an effective interest rate of 8% per annum. The insurance company earns interest at an effective rate of 8.5% per annum. Every July 1, the 1.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter7: Exponents And Exponential Functions
Section: Chapter Questions
Problem 68SGR
Related questions
Question
![On January 1, an insurance
company has 115,000 which is due
to Linden as a life insurance death
benefit. He chooses to receive the
benefit annually over a period of 13
years, with the first payment
immediately. The benefit he
receives is based on an effective
interest rate of 8% per annum.
The insurance company earns
interest at an effective rate of 8.5%
per annum. Every July 1, the
company pays 140 in expenses and
taxes to maintain the policy.
At the end of 8 years, the company
has X remaining.
Calculate X. [3.a-c #11]
65,900
61,000
62,200
O 64,600
63,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb7d8b55-0449-451a-afef-9ba9e90f6704%2Fec7b7de8-22fe-467d-ab1e-3240306bac2f%2Fxk0uz3k.bmp&w=3840&q=75)
Transcribed Image Text:On January 1, an insurance
company has 115,000 which is due
to Linden as a life insurance death
benefit. He chooses to receive the
benefit annually over a period of 13
years, with the first payment
immediately. The benefit he
receives is based on an effective
interest rate of 8% per annum.
The insurance company earns
interest at an effective rate of 8.5%
per annum. Every July 1, the
company pays 140 in expenses and
taxes to maintain the policy.
At the end of 8 years, the company
has X remaining.
Calculate X. [3.a-c #11]
65,900
61,000
62,200
O 64,600
63,400
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