Tomio, age 28, takes out $50,000 of straight-life insurance. His annual premium is $418.20. Using the tables found in the textbook, determine the cash value of his policy at the end of 20 years.

A. $26,500

B. $30,000

C. $13,250

D. $26,000

Tomio, age 28, takes out $50,000 of straight-life insurance. His annual premium is $418.20. Using the tables found in the textbook, determine the cash value of his policy at the end of 20 years.

A. $26,500

B. $30,000

C. $13,250

D. $26,000

50,000/1,000 = 50

265*50 = $13,250

So the cash value of this policy is $13,250

The correct answer is:

C. $13,250