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Gertrude has a life insurance policy that will pay her family $97,000 per year if
she dies. If interest rates are at 1.4% when the insurance company has to pay,
what is the amount of the lump sum that the insurance company must put
into a bank account?
OA. $69,285,714.29
OB. $692,857.14
OC. $6,928,571.43
OD. $692,857,142.90

Respuesta :

The amount of  lump sum that the insurance company must put

into a bank account is $6,928,571.43.

The correct option is (C)

What is interest?

Interest is the price you pay to borrow money or the cost you charge to lend money.

Given:

Gertrude has a life insurance policy that will pay her family $97,000 per year.

Interest = 1.4%

So, the amount of the lump sum = $97000/1.4%

                                                     =  $6,928,571.43

Learn more about this concept here:

https://brainly.com/question/17139089

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