The premium that the insurance company should charge each year to realize an average profit of $500 is $6,900.
First step is to calculated the expected amount to pay
Expected amount=Total loss +50% loss+25% loss
Expected amount=$200,000(0.002)(1)+$200,000(0.01)(0.5)+$200,000(0.1)(0.25)
Expected amount=$400+$1,000+$5,000
Expected amount=$6,400
Second step is to calculate the premium
Premium=Expected amount+ Average profit
Premium=$6,400+$500
Premium=$6,900
Inconclusion the premium that the insurance company should charge each year to realize an average profit of $500 is $6,900.
Learn more about insurance premium here:brainly.com/question/24441770
Answer:
Homemade items took longer to create and were not always equal in quality.
Explanation:
took the test
No honey! Have you asked yourself, do you like jesus or you just want to go to Heaven ?
Answer:
There are many ways you could answer this question.
Explanation:
If it is a physicl copy, you should store it with your other important doncuments of course, or have protective sheets on or around it for safety. If you are talking legally, a notarized document is always going to be more official that a non notarized document, so if you get it notarized, then you can protect yourself and the importance of the document legally.
