What is the most common component in all life insurance policies? a. Living benefits b. Accelerated Death Benefit Rider c. Death benefit d. Cost of living rider
The correct answer is C. While there are many different options and riders on life insurance, all policies possess a death benefit.
I want to be a millionaire in 30 years. I am 25 and have $0 saved. I think I can earn 8% annually on my money. How much do I need to save each month to hit my goal? Lets assume the money in going into a retirement account so no annual taxes.
$670.98 per month. Pmt = i(FV)/(1 + i)n - 1 The future value(FV) is 1,000,000 The interest rate(i) is .67(8/12) The number of periods(n) is 360. 12 months for 30 years. Solve for pmt.
What are the 3 elements to determine future value? Sometimes a fourth is needed.
1. Current value 2. Interest Rate 3. Time(number of periods) 4. Periodic Payments*