The deductible is the maximum amount of money you will have to pay out of your pocket for a car accident, therefore the correct answer is $700. <u>This also implies the correct answer is C.</u>
If you take an insurance policy, the amount you pay each month to keep your insurance is called premium. In the case presented, the $200 monthly premium enables you to file a claim in case of any unforeseen circumstance occurs.
<h2>Further Explanation</h2>
Premium is the amount of money you must pay monthly to keep your insurance. If you register for any insurance policy, your insurer will charge a premium, which is the amount you have to pay for the full cost of your insurance.
Listed below is some of the insurance policy that premiums are paid for.
Also, the cost of premium depends on several factors and these include
- Type of coverage
- Your location
- Past insurance claim
- Your age
A deductible is to the amount of money a policyholder must pay in an insurance claim before insurance coverage comes into effect and the insurer starts payment.
Simply put, it is the amount a policyholder must pay out of their pocket before the insurance company will make any payment.
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KEYWORDS:
- out-of-pocket
- $700 deductible
- monthly premium
- car
- insurance
- accident
Answer:
All Choices (i) (ii) and (iii) except (iv) are correct.
Explanation:
Solution:
Choices (i) (ii) and (iii) are correct in this question.
As we know that, it is a forward contract at the time of maturity so, Boeing 747 will have to deliver 10 million euros to the bank as per the forward contract obligation (fulfills the choice (i)). Furthermore, with forward currency, after selling 10 million euro worth of contract, Boeing 747 will take delivery at 14.6 million dollars which is in US dollars as currency exchange (fulfills the choice (ii)). Hence, after maturity it will not have any exposure to euro (fulfills the choice (iii)).
Hence, All Choices (i) (ii) and (iii) except (iv) are correct.
Answer:
C. $26,689.46
Explanation:
Computation of the present value is
Annual payment × (PVIFA of 7 years, 6%)
Where PVIFA = (1-(1+r)^-n)/r
Where n= Number of period
r= Rate applied
PVIFA = 5.5824 (Kindly check attached picture for explanation
= $4,781 × 5.5824
=$26,689.46
<span>The correct answer would be C) Outsourcing. Outsourcing is a common business process used by many companies to cut costs. In this, companies shift or move processes to a third-party, often located outside the country the company is located in (although this is not always the case). This is done because the third party probably does the same job for lower wages than someone in the company itself. This is a cost cutting measure many companies use. </span>
