Prudent Policy Life Insurance Co.offers a 10-year term life insurance policy with a $250,000 benefit and annual premiums of $200,paid at the BEGINNING of each year.If Prudent can earn 8% on invested capital,what is the present value to the firm of the premiums from one policy,assuming the policy holder outlives the policy term?
A) $1,120
B) $1,342
C) $1,449
D) $1,852
Correct Answer:
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