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A Term Life Insurance Policy Requires Premium Payments of $63

Question 223

Multiple Choice

A Term Life Insurance policy requires premium payments of $63 at the beginning of every month. Using a rate of 15% compounded monthly, the present value of the stream of payments is $4,250. What is the term of the policy?


A) 3 years
B) 6 years
C) 9 years
D) 12 years
E) 15 years

Correct Answer:

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