Which of the following statements about the yearly-rate-of-return meth

Which of the following statements about the yearly-rate-of-return method (also known as the Belth method) of calculating the yearly rate of return for a life insurance policy is (are) true?

I. The formula requires the use of benchmark prices per $1,000 of protection.
II. The main drawback of the formula is its complexity, necessitating the use of a computer to calculate the rate of return.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: A