Peg Gasperoni bought a $50,000 life insurance policy for $180 per year. Ryan Lif
ID: 2757406 • Letter: P
Question
Peg Gasperoni bought a $50,000 life insurance policy for $180 per year. Ryan Life Insurance Company sent her the following billing instructions along with a premium plan example:
"Your insurance premium notice will be mailed to you in a few days. You may pay the entire premium in full without a finance charge or you may pay the premium in installments after a down payment and the balance in monthly installments of $45. The finance charge will be added to the unpaid balance. The finance charge is based on an annual percentage rate of 15%."
If the total policy premium is:
And you put down:
The balance subject to finance will be:
The total number of monthly installments ($30 minimum) will be:
The monthly installment before adding the finance charge will be:
The total finance charge for all installments will be:
The total deferred payment price will be:
$180
$45.00
$135.00
3
$45.00
$3.66
$183.66
$280
$65.00
$215.00
5
$45.00
$7.94
$287.94
$380
$90.00
$290.00
7
$45.00
$14.49
$394.39
Peg Gasperoni bought a $50,000 life insurance policy for $180 per year. Ryan Life Insurance Company sent her the following billing instructions along with a premium plan example:
Explanation / Answer
Finace not paid incase of proper payment.
If not paid finance charge on 180
Finance charge = 180 * .15 = 27
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.