contestada

Susan has purchased a whole life policy with a death benefit of $200,000. Assuming that she dies in 10 years and the average inflation has been 3 percent, what is the value of the purchasing power of the proceeds?

Respuesta :

Answer:

Answer is: $148,809.52

Step-by-step explanation:

Susan has purchased a whole life policy with a death benefit of $200,000.

Assuming that she dies in 10 years.

Rate = 3% or 0.03

Future value after 10 years = [tex](1+r)^{n}[/tex] = [tex](1.03)^{10}[/tex] = 1.344

Purchasing power of proceeds = [tex]\frac{200000}{1.344}[/tex]= $148,809.52

Otras preguntas