The premium that the insurance company should charge each year to realize an average profit of $500 is $6,900.
First step is to calculated the expected amount to pay
Expected amount=Total loss +50% loss+25% loss
Expected amount=$200,000(0.002)(1)+$200,000(0.01)(0.5)+$200,000(0.1)(0.25)
Expected amount=$400+$1,000+$5,000
Expected amount=$6,400
Second step is to calculate the premium
Premium=Expected amount+ Average profit
Premium=$6,400+$500
Premium=$6,900
Inconclusion the premium that the insurance company should charge each year to realize an average profit of $500 is $6,900.
Learn more about insurance premium here:brainly.com/question/24441770
A Reach College is a college to which you have a less than 50% chance of being admitted
Answer:
TRUE!
The amendment states "...nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb."
The format given here is pretty confusing. Can you present it a little more organized? I think I can help you out.
