PLEASE ANSWER FAST

Which statement BEST describes costs typically associated with policies for auto, health, and property insurance?

Ahat [919]

The answer is: A) As deductibles decrease, policy costs tend to increase.

Deductibles refers to the amount of money that the insured had to pay before receiving benefit from the insurance company. If you sign a contract with lower deductibles, the amount of money usually would be allocated to the policy cost that you have to pay each months.

6 0

3 years ago

Read 2 more answers

During a certain year, the nominal interest rate was 7 percent, the real interest rate was 4 percent, and the CPI was 198.3 at t

Dima020 [189]

Answer:

CPI at the beginning of the year = 192.52

Explanation:

given data

nominal interest rate = 7 percent

real interest rate = 4 percent

CPI = 198.3

to find out

CPI at the beginning of the year

solution

we know that according to fisher equation

1 + r = $\frac{1+n}{1+i}$ ....................1

and for smaller values is equivalent to r

r = n - i .....................2

here r is real interest rate and n is nominal interest rate and i is inflation rate

so from equation 2

4 = 7 - inflation rate

inflation rate = 3 percent

so

Rate of inflation = (CPI at the end of the year - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year

put here value

3% = (198.3 - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year

CPI at the beginning of the year = $\frac{19830}{103}$

CPI at the beginning of the year = 192.52

7 0

3 years ago

The High Towers Center is a 300-room hotel that was built ten years ago for a total project cost of $24,000,000. The market valu

bagirrra123 [75]

Answer:

$80

Explanation:

The computation of the price of a room night is given below:-

Investment made = $24,000,000

Return required at $1 per 1,000 = $24,000

Number of rooms = 300

Price of Room rent = Return ÷ Number of rooms

= $24,000 ÷ 300

= $80

Therefore for computing the room price of room rent we simply divide the number of rooms by return required.

7 0

3 years ago

A coffee shop buys 2000 bags of their most popular coffee beans each month. The cost of ordering and receiving shipments is $12

aleksley [76]

Solution :

The optimal order quantity, EOQ = $\sqrt{\frac{2 \times \text{demand}\times \text{ordering cost}}{\text{holding cost}}}$

EOQ = $\sqrt{\frac{2 \times 2000 \times 12}{3.6}}$

= 115.47

The expected number of orders = $\frac{\text{demand}}{EOQ}$

$=\frac{2000}{115.47}$

= 17.32

The daily demand = demand / number of working days

$=\frac{2000}{240}$

= 8.33

The time between the orders = EOQ / daily demand

$=\frac{115.47}{8.33}$

= 13.86 days

ROP = ( Daily demand x lead time ) + safety stock

$=(8.33 \times 8)+10$

= 76.64

The annual holding cost = $\frac{EOQ}{2} \times \text{holding cost}$

$=\frac{115.47}{2} \times 3.6$

= 207.85

The annual ordering cost = $\frac{\text{demand}}{EOQ} \times \text{ordering cost}$

$=\frac{2000}{115.47} \times 12$

= 207.85

So the total inventory cost = annual holding cost + annual ordering cost

= 207.85 + 207.85

= 415.7

6 0

3 years ago

A 22-year-old college graduate just got a job in Nashville. She is considering buying a house with a $200,000 mortgage. The APR

Sloan [31]

Answer:

$16,394.26

Explanation:

using a loan calculator we can determine the amount of interest paid in both loans:

n = 30 years n = 30 years

principal = $200,000 principal = $200,000

APR = 4% APR = 3.6%

monthly payment = $954.83 monthly payment = $909.29

total interest paid = $143,739.01 total interest paid = $127,344.65

the difference in total interest paid between both loans = $143,739.01 - $127,344.65 = $16,394.26

the difference in monthly payment between both loans = $954.83 - $909.29 = $45.54

8 0

3 years ago