HP 17bII manual Keys Display Description, 214 14 Additional Examples

Example: Insurance Policy. You are evaluating your $50,000 insurance policy. The premium of $1,010 is due at the beginning of the year, and a dividend of $165 is received at the end of the policy year. The cash value of the policy is $3,302 at the beginning of the year; it will grow to $4,104 by the end of the year. You can earn 6% on a savings account. What is the annual price per $1,000 protection?

Select the correct equation in the Solver.
Keys:					Display:	Description:
						Creates menu.
					
1010						Stores annual premium.
			
3302						Stores value of policy at
			
						end of last year.
6						Stores interest rate you
						could get elsewhere.
4104						Stores value of policy at
			
						end of this year.
						Stores annual dividend.
					
165					
		
50000						Stores face value of
				
						policy.
						Your protection cost
					
			
						$6.57 per $1,000 face
						(protection) value.

Insurance protection could be purchased for $3 per $1,000 face value. Calculate the rate of return on your savings.

Keys:		Display:	Description:
3			Stores price of alternate
	
			insurance.
			Calculates rate of return.
		

214 14: Additional Examples

File name : English-M02-1-040308(Print).doc Print data : 2004/3/9