ms.prajakta earns Rupees 240000 per annum. she spends rupees 1 lakh ,per annum,on herself. the market rate of interest is 7%. Calculate Ms.prajaktas Life assurance amount , through the human life value method.
Answers
given,
Ms. prajakta earns Rupees = 240000 per annum.
Spends rupees= 100000 / annum
Rate of interest = 7%
Find :
Life assurance amount =?
Life assurance amount =Sum insured * % of premium to be paid
Sum insured=240000 per annum -100000 / annum
Sum insured= 140000 / annum
Life assurance amount =140000 / annum *7%
Life assurance amount =26.849
Answer:
Rs.20,00,000
Step-by-step explanation:
Ms. prajakta earns rupees = 2,40,000/per annam
she spends rupees = 1,00,000/per annam
rate of interest 7% (7÷100=0.07)
life assurance amount = sum insured ÷ rate of interest
sum insured = earn rupees - spend rupees
= 240000 - 100000
= rs. 140000/pa (per annam)
life assurance amount = 140000 ÷ 0.07
= 20 lakhs
answer is rs. 20,00,000/-