I work for a life insurance company. I am basically building a spreadsheet that would help me calculate the reinstatement interest charged to the customer for letting the policy lapse (kind of a late fee)
Example:
Annual premium: $ 1,200.00
Monthly premium: $ 120.00
Policy lapsed in 01/05/2010
Annual Interest: 8% from 02/05/2010 to 06/05/2011 (16 months)
Monthly premiums needed to reinstate: 17 ($ 2,040.00) = (16 months x $ 120)
Interest: ???????????????????????????????
Any idea that could help me … Thank you so much!
excel interest calculator
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