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1 year ago

Which of the following describes the money you must pay to own an insurance policy?

Business

1 answer:

Nikitich [7]1 year ago

6 0

Answer: Premium

Explanation: T

he premium is the per month payment you make to retain insurance, and the deductible is what you pay a provider before insurance takes over.

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Hi guys, i need urgently some help with this question

klasskru [66]

Answer:

Accounting rate of return, also known as the Average rate of return, or ARR is a financial ratio used in capital budgeting. The ratio does not take into account the concept of time value of money. ARR calculates the return, generated from net income of the proposed capital investment. The ARR is a percentage return. Say, if ARR = 7%, then it means that the project is expected to earn seven cents out of each dollar invested (yearly). If the ARR is equal to or greater than the required rate of return, the project is acceptable. If it is less than the desired rate, it should be rejected. When comparing investments, the higher the ARR, the more attractive the investment. More than half of large firms calculate ARR when appraising projects.

Explanation:

hope this helps

4 0

1 year ago

You plan to invest in bonds that pay 6.0%, compounded annually. If you invest $10,000 today, how many years will it take for you

kati45 [8]

Answer:

The answer is 16 years.

Explanation:

The formula for calculating the value of an investment that is compounded annually is given by:

$V(n)=(1+R)^nP$

Where:

$n$ is the number of years the investment is compounded,

$R$ is the annual interest rate,

$P$ is the principal investment.

We know the following:

$25000=(1+0.06)^n \times 10000$

And we want to clear the value n from the equation.

The problem can be resolved as follows.

First step: divide each member of the equation by $10,000$ :

$\frac{ 25000}{10000}=(1+0.06)^n \times \frac{ 10000}{10000}$

$2.5=(1.06)^n$

Second step: apply logarithms to both members of the equation:

$log(2.5)=log (1.06)^n$

Third step: apply the logarithmic property $logA^n=n.logA$ in the second member of the equation:

$log(2.5)=n.log (1.06)$

Fourth step: divide both members of the equation by $log1.06$

$\frac{log(2.50)}{log (1.06)} =n$

$n= 15.7252$

We can round up the number and conclude that it will take 16 years for $10,000 invested today in bonds that pay 6% interest compounded annually, to grow to $25,000.

6 0

3 years ago

If a portfolio had a return of 11 the risk-free asset return was 6, and the standard deviation of the portfolios excess returns

Sindrei [870]

The premium would be 5%

If a portfolio had a return of 11 the risk-free asset return was 6, and the standard deviation of the portfolios excess returns was 25 the premium would be 5%

Portfolio return = 11%

Risk free rate = 6%

Risk premium = Portfolio return - Risk free rate

= 11% - 6% =5%

So, the premium would be 5%

Premium is an amount paid periodically to the insurer by means of the insured for overlaying his chance.

Learn more about premium here- https://economictimes.indiatimes.com/definition/premium

#SPJ4

4 0

11 months ago

The demand for subassembly S is 100 units in week 7. Each unit of S requires 1 unit of T and 2 units of U. Each unit of T requir

Nady [450]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

3 0

2 years ago

All other things being equal, the numerical difference between a present and a future value corresponds to the amount of interes

Valentin [98]

Answer:

im sorry but GOD BLEESED YOU

3 0

2 years ago