Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer: Yes, the years worth of payments is more than the actual claim
Explanation:
the claim was $2500 and he payed $3,012 a year for insurance
Answer:
$64,000
Explanation:
If the policy only covered $80,000 and it also had a coinsurance of 80%, then the insured ill receive: $80,000 x 80% = $64,000
The purpose of coinsurance is to lower the premiums by sharing the risks between the insured and the insurance company. In this case, the insured shares 20% of any risks that the property might suffer and the insurance company covers the remaining 80%. The higher the percentage of the coinsurance, the lower the premium, but the risk for the insured increases.
Answer:
Investment balance= $1,028
Explanation:
Giving the following information:
You plan to deposit $ 700 in a bank account now and $ 300 at the end of the year.
Interest rate= 4%
To determine the balance after the second deposit, we need to use the following formula for the first deposit and add the second one:
FV= PV*(1+i)^n
FV= 700*1.04= $728
Investment balance= 728 + 300= $1,028
Answer:
All of the above.
Explanation:
The hypothesis of an efficient market can be defined as the statement that financial markets are efficient in relation to information, that is, the prices of securities must reflect all available information. This hypothesis holds that the expected return on a security is equal to the return on equilibrium, which means that an agent is not able to achieve returns above the market average, as his returns would be consistent with the public information that must be available at the time that the investment is made.
So all of the above are true.