Rino has just purchased a five-year term life insurance policy. For his premium payments, Rino can choose either beginning-of-month payments of $38.50 or beginning-of-year payments of $455. In current dollars, how much will Rino save during the five years by choosing the lower-cost option? Assume that money can earn 4.8% compounded monthly.

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The Answer of Rino has just purchased a five-year term life insurance policy. For his premium payments, Rino can choose either beginning-of-month payments of $38.50 or beginning-of-year payments of $455. In current dollars, how much will Rino save during the five years by choosing the lower-cost option? Assume that money can earn 4.8% compounded monthly.

Rino Has Just Purchased a Five-Year Term Life Insurance Policy