Answer:
The answer is: In order for the company to break even on all the $88,000 policies in that area it must charge $528 per yearly policy.
Explanation:
In order to calculate what premium the insurance company should charge in order to break even, we must know how much money the company will have to pay during the year.
Fire insurance policy of $88,000
<u>Possible losses Probability Money paid by company </u>
total loss 0.001 $88,000
50% loss 0.01 $44,000
The company will have to pay $88 ($88,000 x 0.001) for a total loss and $440 ($44,000 x 0.01) for a 50% loss, we add them up and get $528.
In order for the company to break even on all the $88,000 policies in that area it must charge $528 per yearly policy.
A. overdraft fees would likely be the highest. you could buy something for $5 and go negative and banks would charge you way more than $5
Answer: I dont speak english but I'm going to try to help you
Explanation: