Alright, let’s go through each step of the problem as Wilma worked through it:
a. Calculation of [tex]$1200 \times 1.26$[/tex]
Wilma multiplied her annual payment by [tex]\(1.26\)[/tex]:
[tex]\[
1200 \times 1.26 = 1512.0
\][/tex]
So, the result is: \[tex]$1512.00
b. Calculation of $[/tex]1200 \times 1.19[tex]$
Next, she multiplied her annual payment by \(1.19\):
\[
1200 \times 1.19 = 1428.0
\]
So, the result is: \$[/tex]1428.00
c. Calculation of [tex]$1200 \times 1.12$[/tex]
Then, she multiplied her annual payment by [tex]\(1.12\)[/tex]:
[tex]\[
1200 \times 1.12 = 1344.0
\][/tex]
So, the result is: \[tex]$1344.00
d. Calculation of $[/tex]1200 \times 1.06[tex]$
She also multiplied her annual payment by \(1.06\):
\[
1200 \times 1.06 = 1272.0
\]
So, the result is: \$[/tex]1272.00
e. Sum of results from steps a to d plus the initial [tex]$1200$[/tex]
Wilma summed the results from parts a-d and added the initial annual payment:
[tex]\[
1512.0 + 1428.0 + 1344.0 + 1272.0 + 1200 = 6756.0
\][/tex]
So, the sum of the results plus the initial annual payment is: \[tex]$6756.00
f. Cash value of a $[/tex]90,000 policy after 5 years
Wilma considered the cash value of her [tex]$90,000 insurance policy after 5 years:
\[
90000
\]
So, the cash value of the policy after 5 years is: \$[/tex]90,000.00
Therefore, the results are as follows:
a. [tex]\(\$ 1512.00\)[/tex]
b. [tex]\(\$ 1428.00\)[/tex]
c. [tex]\(\$ 1344.00\)[/tex]
d. [tex]\(\$ 1272.00\)[/tex]
e. [tex]\(\$ 6756.00\)[/tex]
f. [tex]\(\$ 90000.00\)[/tex]
