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Mathematics, 13.11.2019 19:31 robyn88
Wilma worker has a $90,000 insurance policy for which she pays $1,200 a year. to compare the cash value of the policy to investing the same amount of money at 6% for four years, she performs the following calculations:
a. to calculate the interest earned in the fourth year, wilma multiplies $1,200 x 1.064 $
b. to calculate the interest earned in the third year, wilma multiplies $1,200 x 1.063 $
c. to calculate the interest earned in the second year, wilma multiplies $1,200 x 1.062 $
d. to calculate the interest earned in the first year, wilma multiplies $1,200 x 1.061 $
e. to find the total interest earned, wilma adds the interest calculations in a-d and thrn adds $1,200 to the sum to calculate the total value after four years $
f. wilma calculates the cash value of a $90,000 policy after 5 years
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Wilma worker has a $90,000 insurance policy for which she pays $1,200 a year. to compare the cash va...
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