Answer:
No, the cost of the annual premium for 10 years was less than the accident claims
Explanation:
Since in the question it is mentioned that the annual premium is $1,200, $200,000 is the bodily injury coverage and $100,000 should be the property damage coverage
Also the $40,000 and $20,000 represent the medical cost and the car damage
So here the cost should not outweight the benefit of the transferring the risk as the annual premium cost for ten years should be lower than the accident claims
Answer:
The present value is $938.82
Explanation:
Giving the following information:
Compute the present value of $1,150 paid in three years using the following discount rates: 6 percent in the first year, 7 percent in the second year, and 8 percent in the third year.
We need to discount the final value of $1,150 for each discount rate starting in year 3.
PV= FV/(1+i)^n
Year 3= 1,150/1.08= 1,064.81
Year 2= 1,064.81/1.07= 995.15
Year 1= 995.15/1.06= 938.82
The present value is $938.82
False, If wage goes up so will everything else
Answer:
He would save money over time.
Explanation:
Answer:
C) loyalty to the brand
Explanation:
Brand loyalty refers to a customer's personal attachment to a brand, e.g. some people really like certain car brands and to them, they are the best cars in the world, and no one should dare say the opposite in front of them.
Lowest end models generally attract younger buyers, and if they develop brand loyalty, they will keep buying the same brand over and over again. Their future cars will generally be larger and more expensive ones also.
This is one of the reasons why Cadillac's sales are continuously falling, since for decades they only focused on elder and wealthier customers, who are really old now.
