Insurance companies create a pool of funds to handle uncertain loss.Insurance companies are in the business of assuming risk on behalf of their customers in exchange for a fee. <span>Thetransaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in return of the insurer's promise to compensate the insured in the event of a covered loss. </span>
Answer:
Net income $1,265
Explanation:
The computation of the net income or net loss is shown below:
Revenues
Cash revenues $2,900
Credit revenue $2,050
Total revenues (a) $4,950
Less:
Expenses :
Rent ($1,275)
Telephone ($280)
Salaries ($1,750)
Office cleaning service ($380)
Total expenses (b) ($3,685)
Net income $1,265 (a - b)
Answer:
Company quotes an interest rate 17 percent on one-year loans.
Explanation:
Borrow value=$34000
interest rate of company in one year=17 percent
Total interest in a year =$34000×
total interest=$5780
Total payment in one year=$34000+$5780
Total payment=$39780
You will pay $39780/12 or $3315.00/month according to company statement.
Answer: 25
Explanation:
Given, A company experiences a stock split due to poor performance. Ariana's initial investment was a purchase of 50 stocks at $12.99 per share.
Value of her shares = 50 x $12.99
= $649.50
The reverse split is 1:2 means the number of shares split into half but the total value of her shares remains the same.
i.e. Ariana owns 50/2=25 stocks after the stock split.
Hence, Ariana owns 25 stocks after the stock split.