It is a bad idea because a minimum auto liability insurance policy is meant for compensation against liability and not for saving purpose.
<h3>What is the
liability insurance?</h3>
It is a legal requirement to have an active minimum liability insurance coverage to cover a liability especially injury and damage to third party property
In conclusion, the idea of saving money with the insurance policy is bad because it is meant for compensation against liability and not for saving purpose.
Read more about liability insurance
<em>brainly.com/question/15933666</em>
Answer:
Interest rate = 4.75% (approx)
Explanation:
Given:
Face value of bond = $1,000
Present value of bond = $954.70
Interest rate = ?
Computation of Interest rate :
![Interest rate = [\frac{Face value of bond}{Present value of bond}-1] \times 100\\](https://tex.z-dn.net/?f=Interest%20rate%20%3D%20%5B%5Cfrac%7BFace%20value%20of%20bond%7D%7BPresent%20value%20of%20bond%7D-1%5D%20%5Ctimes%20100%5C%5C)
![Interest rate = [\frac{1,000}{954.70}-1] \times 100\\\\Interest rate = [1.04744946-1] \times 100\\Interest rate = [0.04744946] \times 100\\= 4.744946](https://tex.z-dn.net/?f=Interest%20rate%20%3D%20%5B%5Cfrac%7B1%2C000%7D%7B954.70%7D-1%5D%20%5Ctimes%20100%5C%5C%5C%5CInterest%20rate%20%3D%20%5B1.04744946-1%5D%20%5Ctimes%20100%5C%5CInterest%20rate%20%3D%20%5B0.04744946%5D%20%5Ctimes%20100%5C%5C%3D%204.744946)
Interest rate = 4.744946%
Interest rate = 4.75% (approx)
The correct answer is $13,500
The insurance coverage for the garage will cover the garage for 10% of the insured value of the home. This is calculated by multiplying .1 x $135,000 = $13,500.
Even though there is $15,000 in damage, the garage is only covered for $13,5000 of insurance.
heterogeneity defined as the variability of inputs and outputs of services, which makes services less standardized and uniform than goods.
