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Kobotan [32]
3 years ago
10

For the past 16 months, Susie has been paying $126.50 each month to her insurance company. After causing an accident last month,

her insurance company notified her that her monthly payment will be increased by $21.25. What increase in her annual premium did Susie’s insurance company apply as a result of the accident?
Business
2 answers:
Nitella [24]3 years ago
7 0

To solve for Susie's new annual premium take the increase in payment of $21.25 and multiply it by 12 to get the total amount that her annual premium increase.

($21.25)(12) = $225

Susie's new annual premium amount has gone up $225 yearly due to her accident.

NeTakaya3 years ago
5 0
Should be a $225 increase for her annual premium.
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3 years ago
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Answer:

$468,844 approx.

Explanation:

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The price of a bond is the present value of future cash receipts it generates to the investor in the form of interest stream and principal stream.

B_{0} = \frac{i}{(1\ +\ ytm)^{1} }\ +\ \frac{i}{(1\ +\ ytm)^{2} }\ +.....+\frac{i}{(1\ +\ ytm)^{n} } \ + \frac{RV}{(1\ +\ ytm)^{n} }

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n = term to maturity

B_{0} = \frac{22500}{(1\ +\ .05)^{1} }\ +\ \frac{22500}{(1\ +\ .05)^{2} }\ +.....+\frac{22500}{(1\ +\ .05)^{20} } \ + \frac{500000}{(1\ +\ .05)^{20} }

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