1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jolli1 [7]
3 years ago
9

A 20​-year-old woman wants to purchase a ​$100​,000 ​one-year life insurance policy. What should the insurance company charge th

e woman for the policy if it wants an expected profit of ​$50​?
Business
1 answer:
asambeis [7]3 years ago
3 0

Answer:

Hello some parts of the question is missing here is the missing part

Age          probability of female death

20              0.00060

30              0.00070

40              0.00095

50              0.00300

Answer : $110

Explanation:

Given that the woman is 20 years of age and wants to buy one-year life insurance policy the insurance company would have to charge her considering the probability of female death within 20 years of age

expected profit for insurance company = $50

cost of insurance = $100000

For the company to make a profit of $50 we make use of this relation

x * ( 1 - probability of female death at 20 ) - ( cost of insurance - x ) * probability of female death at 20  = 50

= x *( 1 - 0.00060 ) - ( 100000 - x ) * 0.00060 = 50

= x* ( 0.9994 ) - (60 - 0.00060 x ) = 50

= 0.9994 x - 60 + 0.00060 x = 50

hence x = 50 + 60 = $110

You might be interested in
Sasha made a career decision that didn’t turn out as planned. What should she do?
alex41 [277]
Stay positive and try again....
3 0
3 years ago
Read 2 more answers
Teresa has just opened a NOW account that pays 3.50​% interest. If she maintains the account at the required minimum balance of
nataly862011 [7]

Answer:

She will earn $17.50.

Explanation:

Interest earned is the amount of interest earned on the a deposited amount in a saving amount on simple interest.

Balance in the account = $500

Interest rate = 3.5%

Interest earned = Average balance  x Interest rate

Interest earned  = $500 x 3.50%

Interest earned  = $500 x 0.035

Interest earned  = $17.50

5 0
3 years ago
Watson Foods, Inc. reported the following transactions for September 2019.
natulia [17]

Answer:

(d) $6,000

Explanation:

The computation of the total liabilities is shown below:

Total liabilities = Office equipment purchased - cash paid

                       = $10,000 - $4,000

                       = $6,000

The remaining amount would reflect the note payable which is come under the liabilities accounts which is shown in the balance sheet.

The other information which is given in the question is not related to the liabilities account. Hence, we ignored it.

4 0
3 years ago
Another bank is also offering favorable terms, so Rahul decides to take a loan of $14,000 from this bank. He signs the loan cont
nikklg [1K]

Answer: $14,426.43

Explanation:

At the end of 4 months and assuming a  12 months and 365 days in a year, the formula to be used to calculate how much Rahul owes is;

We use the formula:

Amount owed = Present Value ( 1 + rate/365 ) ^ 365 * time period

Amount owed = 14,000 * ( 1 + 0.09/365 ) ^ (365 *4/12 )

Amount owed  = $14,426.43

3 0
3 years ago
Charging high prices to earn large profits during a time when there is little competitionrepresents a ________ strategy:________
Usimov [2.4K]

Answer:

Skimming

Explanation:

Price skimming, also known as skim pricing, is a pricing strategy used by those who face little or no competion, what normally happens is that a firm charges a high price and then gradually may need to lowes the price to attract more customers.

Price skimming is used to earn large profits especiallyn when a new product or service is introduced into the market. The pricing strategy is largely useful iwhen the firm is the first to enter the marketplace. The aim of this is to generate the large profit in the shortest time possible.

6 0
3 years ago
Read 2 more answers
Other questions:
  • Management at Work
    14·1 answer
  • Rank the following instruments in terms of credit risk. In your rankings, use 1 for the greatest credit risk and 4 for the small
    5·1 answer
  • One way that you can create your personal brand online is to keep a____ A) Journal b)blog c) email . Not only can you post your
    15·2 answers
  • Youâve dreaded it for a while, but now you feel prepared. In 30 minutes youâll have to terminate Tim, a 12-year employee who is
    9·1 answer
  • Preferred stockholders: A. have the right to receive dividends only if there are enough dividends to pay the common stockholders
    5·1 answer
  • Suppose the government is concerned about firms in the United States importing illegal caviar. As a result, the government incre
    5·1 answer
  • you need to have $32000 in 7 years. you can earn an annual interest rate of 3 percent for the first 4 years, and 3.6 percent for
    5·1 answer
  • What is the primary difference between a static budget and a flexible budget? Select one: a. The static budget contains only fix
    12·2 answers
  • Martha works as a senior manager in a bank. The bank has hired 20 new employees. Martha has spent a week defining the roles and
    9·2 answers
  • AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!