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elena55 [62]
3 years ago
15

Kevin, who has liability limits of $20,000/$40,000/$20,000 and a $500 collision deductible, is involved in an accident. Due to h

is negligence he runs into a Rolls Royce. Three people sustained bodily injuries in the Rolls Royce. The driver's injuries were worth $1,000,000, a passenger received injuries worth $12,500, and another passenger received injuries of $7,100. How much will the PAP pay for these bodily injuries?
Business
1 answer:
harina [27]3 years ago
4 0

Answer:

Amount to pay by PAP = $39,600

Explanation:

The liability limits of $20,000/$40,000/$20,000 implies that the highest amount PAP will pay for driver's injuries is $20,000, while the highest to pay for the first of two passenger is $40,000 and $20,000 for second passenger.

Since the a passenger received injuries worth $12,500, and another passenger received injuries of $7,100, the PAP will the actual amount and $20,000 for the driver's injuries. The total can therefore be calculated as follows:

Amount to pay by PAP = $20,000 + $12,500 + $7,100 = $39,600

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Van has saved $30 per week to buy a new Blu-Ray player. He compares two different models: a Panaview that is priced at $130 and
creativ13 [48]

Answer:

Money is served three purposes- unit of account, store of value and medium of exchange

Explanation:

In this question, we are to identify the role money plays in each of the following parts of the story.

Money is used to measure the valueof good in money unit, so the values can be compared easily.

In the first case, Van is comparing between value of goods. the money serves as unit of account.

Money is used as medium of echange to avoid the difficulty arising out of goods to goods exchange.

In the second case, Van is exchanging $140 for the DVD, money is serving as medium of exchange.

Money also has store of value, it can be saved and exchanged for goods over time.

In third case, Van is saving money for future exchange, money is serving its store of value function.

3 0
3 years ago
Firm A and Firm B are the only two companies that sell mail-order DVD rental subscriptions. For several years, Firm A priced its
sveta [45]

Answer:

b. Firm A engaged in predatory pricing.

Explanation:

Since Firm A and B are the only two companies that sell mail-order DVD rental subscriptions.

Firm A decided to price its subscriptions below average variable cost thereby causing Firm B to also sell subscriptions below average variable cost, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.

Based on this information only, an argument can be made that Firm A engaged in predatory pricing.

Predatory pricing is a marketing or pricing strategy that involves lowering the cost of goods and services for a short-term, in order to lure competing firms to lower their price, thus causing them to go bankrupt and exiting from the market.

3 0
3 years ago
Which of the following statements is true? A. Expenses are decreased by debits. B. Liabilities are decreased by credits. C. Reve
diamong [38]

Answer: Option C

Explanation:

A. As per the general principles of accounting expenses are recorded on the debit side thus they are increases when debit transaction is made.

B. Transactions involving liabilities are recorded on credit side of the accounts.

C. Revenues are recorded on credit side of the transactions thus revenues increased when accounts are credited.

D. Transactions involving purchase of assets are recorded on debit side thus debit transactions increases debits.

8 0
3 years ago
3. Suppose that all households hold all their wealth in assets that automatically rise in value when the aggregate price level r
alexira [117]

Answer:

What happens to the wealth effect of a change in the aggregate price level as a result of this allocation of assets?

  • The consumers' wealth effect will rise since the slope of the aggregate demand curve increases as the prices of assets increases, i.e. the slope of the aggregate demand curve becomes steeper as customers become wealthier.

Will aggregate demand still be downward sloping? Why or why not?

  • The aggregate demand curve sill still be downward sloping because as the price of a good or service increases, the quantity demanded will still decrease. An inverse relationship exists between price changes and quantity demanded.
8 0
3 years ago
Horatio has taken out a $12,450 unsubsidized Stafford loan to pay for his four-year undergraduate education. The loan has an int
abruzzese [7]

Answer:

Explanation:

We solve by first, getting the quota Horatio pays on his loan:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 12,450

time: 10 yearss x 12 months per year = 120

monthly rate: 7.3% / 12 = 0.006083333

12450 \div \frac{1-(1+0.006083333)^{-120} }{0.006083333} = C\\

C  $ 146.487

Now, we miltiply the quota by the quantity of payment ans subtract the principal to get the amount of interest paid:

quota times quantity of monthly payment: total amount paid

less principal: interest paid.

146.49 x 120 - 12,450 = 5,128,80

4 0
3 years ago
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