. An insurance company offer contracts for a certain peril. In a contract period, which is 6 months, the following payoffs can o
ccur: payoff Prob. Of loss 15000 0.015 12000 0.023 8000 0.028 6000 0.035 Find the average payoff per contract in a contract period. If the company has to cover its operating cost which is a 12% overhead and make a 4% profit what should be the yearly premium which must charge for each contract? What is the probability that a contract will incur losses not exceeding $9,200 during a contract period?
1 answer:
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Answer:
Step-by-step explanation:
Given that acceleration of an object is
is the solution to the differential equation
Since v(0) =7
we get ln 7 = C
Hence
since velocity is rate of change of distance s we have
substitute t=0 and s=0
So solution for distance is
Answer:
Anything that does not cost more than $2,560.00
Step-by-step explanation:
Provided that Nikita is spending money that she had invested and the amount she collected over the period of 7 years. She can buy any item that costs no more than $2,560.00 but how?
It is a problem of simple interest:
Here the principal amount (P) = $2,000.00
Interest rate (r) = 4%
Time period (t) = 7 years
So, total amount that she would get by the end of 7 years is:
Plugging the values we get:
So the interest collected over 7 years is $560.00
Therefore, the total amount after 7 years is:
If Nikita is using this money then the most expensive item that she could buy will cost no more than $2,560.00.