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Answer: $490,000
Explanation:
you take the gross income (annual in this case) and first multiply it by 70%(0.70). Then multiply it again by 7.
$100,000 x 0.70 = 70,000
70,000 x 7 = $490,000
Answer:
447.72
Explanation:
80+2=82
82/100 × 246 = 201.72 friends marks
therefore total marks is 201.72+246=447.72
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