Question

Emily Webster purchased a twenty-year endowment policy at age 27 with a face value of $25,000. What is her annual premium?

A) $1,058.50
B) $529.25
C) $2,117.00
D) $2,645.50

Answer 1

The student's question regarding Emily Webster's annual premium for a twenty-year endowment policy cannot be accurately answered with the information provided. Additional details such as interest rates and insurance company expenses are needed to perform this calculation.

Step-by-step explanation:

The question asks about the calculation of an annual premium for a twenty-year endowment policy. However, the details provided such as PV, payment amounts over different periods, and calculations related to inflation and present value of future money are not directly related to computing Emily Webster's annual premium. There is insufficient data in the question or the reference information provided to accurately determine Emily's annual premium for a $25,000 twenty-year endowment policy at age 27.

Typically, to calculate the annual premium for an endowment policy, you would need to know the interest rate, mortality rates, expenses, and potential bonuses or dividends, none of which are provided in the student's question or the reference information.