Answer:
$ 8299.632
Explanation:
Given data in the problem:
The value of the home = $ 136,000
The insured amount of the house = $ 105,000
80% coinsurance provision = 0.8 × $ 136,000 = $ 108,800
Claimed amount = $ 8,600
Therefore, the claimable amount = 
= $8299.632
hence, the amount the insurance company will pay = $ 8299.632
Answer:
D. the market will fail Explanation: The output at maximum level will eventually reduce demand because the product will be over in circulation which attract a deducting in its price and demand too.
Answer: $4.87
Explanation:
The question is asking for the Contribution margin which is the amount left of the selling price after the variable costs have been deducted.
Contribution margin = Selling price - variable costs
= Selling price - Raw materials - packing costs
= 17 - 11.23 - 0.90
= $4.87
Answer:
The below solution will guide your believe of what should be appropriate qualitative assumptions for inherent risk.
Explanation:
Answer:
Explanation:
Assume the initial invest at the beginning is $100.
The investment at end of year 4 is:
100 x 1.16 x 1.11 x 1.1 x 1.1 = 155.80
a) CAGR over the 4 years = (155.8 / 100 ) ^ (1/4) = 11.72%
b) Average annual return over 4 years = (16% +11% + 10% +10%) /4 = 11.75%
c) Since the returns over the 4 year period are not much volatile, average annual return is a better measure.
If the investment's returns are independent and identically distributed, Average annual return will be the better measure because there is no correlation between returns over the years and thus there is no point to take into consideration the compounding effect by using CAGR.
