A woman insures her life for 3 million by paying a premium of #20 000 at the beginning of every year for 20 years. After 20 years the insurance company ends the agreement and give her a lump sum payment of #50 000. Assume compound interest at 8 percentage per annum
(a) Calculate the actual value of the premiums paid.
(b) Find the profit made by the company.
(c) Which piece of numerical information is not needed in this problem?
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Asked by Favy
on 16th January, 2022
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