Question

Zeke has a universal life insurance policy with a face value of $200,000. The monthly cash value of the policy is x dollars. The premium is m dollars per month. He is going to use the cash value to pay for premiums for as long as it can. In those months, the cash value will earn y dollars in interest. Express algebraically the number of months the cash value can be used to pay the premium.

Answer 1

The express the number of months the cash value can be used to pay the premium algebraically, we use the equation n = $200,000 / (m + y), where n represents the number of months, m represents the premium, and y represents the interest earned.

Step-by-step explanation:

To algebraically express the number of months the cash value can be used to pay the premium, we can set up an equation using the given information.

Let's assume that Zeke can use the cash value to pay the premium for n months. In those months, the cash value will earn n*y dollars in interest.

So, the equation will be:

Face Value of the Policy - Total Premium Paid = Total Interest Earned

Or,

$200,000 - m*n = n*y

We can now solve this equation for n by isolating the variable:

$200,000 = n*m + n*y

$200,000 = n(m + y)

n = $200,000 / (m + y)

Therefore, the algebraic expression for the number of months the cash value can be used to pay the premium is n = $200,000 / (m + y).