Answer:
a) = $9000 10yr premiums
b) = $6016.95 Cash value
c) Ratio = 2.017 : 3 = 67% Ratio Value To Paid Premiums in percent.
Step-by-step explanation:
The life insurance has a 5 year changeable rate after every 5 years.
So we need to find ratio every 5 years to work out what he was paid.
Instead of working out each one
We look for patterns for 60,000
If 5 year = 60,000 this means 2x
But it was 10 years 89/30 =2.9666...rep x (counter-check multiplier)
Back to questions
Tom paid 900 x 10 = 9,000 = ? in value
Answer a = What did he pay = $9000
Answer b = What is this $9000 in cash value where 5 years shows 30,000 the ratio is 9:30 = 3:10 so for 5 years this would = 30% of 30,000 =$9,000 for 5 years.
For 10 years the ratio goes up from 30% of 30,000 to 30,000 of 89,000 = 33.71
To prove 9000 is cash share of 30,000 at 5 years we have to half = $4500 for 5 years.
To prove 9000 is cash share of 89,000 at 10 years we take the $4500 and multiply it by 33.71% = 4500 x 1.3371 = 6016.95
b) So his cash value = $6016.95
His life insurance = $60,000 as told
c) The ratio = 6016.95 : 9000 simplify = 2.017 : 3 (as we rounded and added + $16.95 as 0.017. for cash value to paid premiums
We (counter-check multiplier) 2.9666
9000/2.9666 = 3033.77603991
9000- 6016.95 = 2983.05
So we can see after 5 years it decreased by $40
But for b and c, lets say we didnt half it 9000 = 30,000 = 30% 33.71 = 33.71%
We then see 30% of 89000 = 30,000 and x 9000 by 1.33.71 = $12033.90
So cash value will show 10 years = $12,033.90
Showing ratio 9000: 12033.90 =
9000/33.90 =265 = 2.65
So 75% - 2.65% = 3% rounded = 72%
This inverse = 28%
Then the percentage = 67.% can be changed to 28% or used as 72%
