Options:
a) $10,000
b) $1,000
c) $1,100
d) $11,000
Answer:
d) $11,000
Explanation:
There is 1% chance of involving in the auto accident
1% of $100, 000 = 1/100 * 100000 = $1000
The insurance company charges a 10% risk premium
10% of $100,000 = 10/100 * 100000 = $10,000
Full coverage = $10,000 + $ 1000
Cost of Full coverage = $11,000
Answer:
B. decreases from 10 to 6.25.
It can be C because it's accepting the risk to do it
But it can also be B because it's sharing the risk with everyone else
$175,000-$25,000=$150,000
$150,000:10=$15,000
$15,000*2=$30,000
$150,000-$30,000=$120,000
That amount would be $120,000
A proportional tax, because it is a percentage of a total paycheck