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Calculatinng the time period and ROI in the given case

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You purchased a $100000 life insurance policy for a single payment of $35000. If you want to earn 9% on invested funds how soon must you die for the policy to have been the superior alternative? If you die within 10 years what is the return on the investment in life insurance?

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Solution Summary

The solution describes the steps to calculate the time period and rate of return in the given case.

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Future Value=FV=$100,000
Present Value=PV=$35000
Rate of Return=r=9%
Number of period=n=?

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Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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