fin money amp capital market assignment 2
please answer all the questions and you may use the lectures attached. (for question 1 and 4 please include the formula and solving process) let me know if you have any question. thanks.
1. Suppose that a person wants to purchase an annuity today that would pay $15,000 after taxes per year until the end of that personâ€
s life. The insurance policy expects the person to live for 25 more years and can invest the amount received for the annuity at a guaranteed interest rate of 5%. What is the fair price (the amount needed to establish the annuity).Check page 485 in the book. Men if you use a make sure you show your work, even if you use a calculator.
2. Define the following types of insurance policies:
a. Term Life
b. Whole Life
c. Endowment Life
d. Variable Life
e. Universal Lie
3. Whatâ€
s the difference between an open end mutual fund and a closed end mutual fund?
4. The total value of an equity mutual fund is $354,786,500. The expenses are $29,986. There are 34,879 shares outstanding. What is the fundâ€
s Net Asset Value (NAV)?
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