"K has a $10,000 traditional whole life policy with a loan outstanding" of $1,000 and a 5% interest charge. At the end of the first year of the loan, K did not pay the loan interest. What is the result of K's inaction?
Answers
Answer:
The result of K's inaction causes an increase in the outstanding loan by $50
Explanation:
Step 1: Determine the interest amount
The interest amount can be determined as follows;
I=PRT
where;
I=interest amount
P=principal amount
R=annual interest rate
T=time
In our case;
I=unknown
P=$1,000
R=5%=5/100=0.05
T=1 year
replacing;
I=1,000×0.05×1=$50
Step 2: Determine the total loan amount
This can be expressed as;
A=P+I
where;
A=total loan amount
P=principal amount
I=interest amount
In our case;
A=unknown
P=$1,000
I=$50
replacing;
A=1,000+50=1,050
The loan amount due after a year=$1,050
The result of K's inaction causes an increase in the outstanding loan by $50
Final answer:
If K does not pay the loan interest on their whole life policy, the loan interest is added to the loan balance, meaning the debt increases over time. This can eventually reduce the death benefit if not repaid in a suitable time frame.
Explanation:
The subject of your question is in the context of insurance policy loans. If K has a $10,000 traditional whole life policy and borrowed $1,000 from the policy without repaying the loan interest at the end of the year, the 5% interest charge would compound onto the existing loan. As a result, the loan balance would increase. In specific terms, the new loan balance would be $1,050 ($1,000 original loan plus $50 interest). If this is not repaid, yearly interest will be calculated on this increased balance, leading to a further increase in the debt. This could eventually reduce the death benefit if the loan is still outstanding at the time of K's death.
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Answer and Explanation:
Because there is a 23% chance of getting that many girls by?chance, the method has A) has statistical significance B) does not have statistical significance C) has practical significance D) does not have practical significance. A) Most or B) Not many couples would likely use a procedure that raises the likelihood of a girl from approximately? 50% rate expected by chance to the what % produced by this method, so this method A) has statistical significance B) does not have practical significance C) does not have statistical significance. D) has practical significance.
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= 1066 ÷ 2097
= 0.5084
or
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Answer:
Explanation:
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To Subscription revenue A/c $12,000
(Being the deferred subscription amount is adjusted)
The computation is shown below:
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= $36,000 × (4 months ÷ 12 months)
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Answers
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Answers
(1+R)= (1+r)*(1+h)
R=((1+0.025)*(1+0.09))-1
H=3.67%
Answers
Answers
The fixed factory overhead volume variance is $400 (unfavorable)
solution
Fixed Overhead Volume Variance = Applied Fixed Overhead – Budgeted Fixed Overhead
Applied Fixed Overhead= 4,000 units ×2.5 hrs per unit×$0.80 = $8000
and
Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400
Fixed Overhead Volume Variance = $8000- $8400 = $400 (unfavorable)