Answer: $13125
Explanation:
The amount that the insurer will pay to settle this loss will be calculated thus:
= Insured claim × Insurance value / 80% of replacement value
= 15000 × 105,000 /80% × 150000.
= 15000 × 105,000 / 120000
= 13125
Therefore, the insurer will pay $13125
Answer:
$205,592
Explanation:
Interest cost is the Present Value of this $ 20,000 annuity streams at time zero i.e. ( Year 2022
Value of annuity stream = $ 20,000 x 11.11839
Present Value of annuity streams at 2015 =$ 222,367.80
Discount Factor for 2017 = (1.04)-2 = 0.92456
Present Value at 2022= $ 222,367.80 x 0.92456
Service Cost= $ 205,592
A credit union often requires that its clients be members who own a share in the company.
Answer: D. $7,500
Explanation:
Before the $150,000 mortgage at 5%, the existing $40,000 balance of the loan was paid off. Therefore, only the mortgage was payable. At 5% x %150,000 = $7500 interest.
Therefore, the amount $7500 interest expense Kris will deduct as home related interest expense would be $7,500.