Question

They answer it but is wrong :(

Calculating a Death Benefit Alexandra Cunningham of Gardner, Massachusetts, has a $180,000 participating cash-value policy written on her life. The policy has accumulated $4,400 in cash value; Alexandra has borrowed $2,800 of this value. The policy also has accumulated unpaid dividends of $1,243. Yesterday Alexandra paid her premium of $1,500 for the coming year. What is the current death benefit from this policy? ekook Do the Math 12-3 Calculating a Death Benefit Alexandra Cunningham of Gardner, Massachusetts, has a $180,000 participating cash value policy written on her life. The policy has accumulated $4,400 in cash value Alexandra has borrowed $2,800 of this value. The policy also has accumulated unpaid dividends of $1243. Yesterday Alexandra paid her premium of $1,500 for the coming year. What is the current death benefit from this policy? 98766 ®

Answer 1

Solution :

Current death benefit from this policy = $178,143 Explanation :

Following information are given;

Participating cash value = $180,000

Accumulated cash value = $4,400

Borrowed amount = $2,800

Accumulated unpaid dividends = $1,243

Coming year dividend paid = $1,500

Current death benefit from this policy =

(Participating cash value + Unpaid dividend + Borrowed amount - Coming year dividend paid - Accumulated cash value)

Now let's put the values in above given formula;

($180,000 + $1,243 + $2,800 - $1,500 - $4,400) = $178,143