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GenaCL600 [577]
3 years ago
6

Use the following scenario for the question below. A group of 100 people seeks out an insurance company to underwrite health ins

urance for its members. The expected medical spending for the group is $150,000. Assume a net loading cost of 15 percent. If an additional 10 people, who have expected medical spending of $5,000 per person on average, join the group, the new premium will be approximately: a. $2,100. b. $2,300. c. $1,818. d. $3,090. e. $5,822.
Business
1 answer:
makvit [3.9K]3 years ago
7 0

Answer:

c. $1,818.

Explanation:

Average premium = ( Expected medical cost + increase in medical spending + loading cost ) / 100

Average premium = ( $150,000 + $5,000 + 15% ) / 100

Average premium = $1,818.

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David is buying a new car for $21,349.00. He plans to make a down payment of $3,000.00. If he's to
marshall27 [118]

Answer: (D) 5.90%

Explanation: David is going to buy a new car at $21,349.

The down payment is $3,000.

Loan amount (Present value) = $21,349 - $3,000

Loan amount (Present Value) = $18,349

Installment amount (pmt) = $352

As the payment is made monthly (12 months in a year),

Number of payments = 5 * 12

Number of payments = 60

Using the rate option in excel,

=rate(nper,pmt,-pv,fv,type)

Insert the variables into the option, we get

=rate(60,352,-18349)

By inserting the above formula in excel we get,

Rate = 0.47%

Rate of 0.47% is monthly, to get APR

APR = (1+monthly rate)^12 - 1

APR = (1+0.0047)^12 - 1

APR = (1.0047)^12 -1

APR = 1.0586 - 1

APR = 0.0586

APR = 5.86% or 5.90%

Therefore the correct option is 5.90%.



8 0
3 years ago
g Robert Hitchcock is 40 years old today and he wishes to accumulate $500,000 by his 65th birthday so he can retire to his summe
Mariana [72]

Answer:

The correct answer is $6934.48.

Explanation:

According to the scenario, the given data are as follows:

Time period ( 41 - 64 years) (n)= 24 years

Rate of interest (r) = 8%

Future value (FV) = $500,000

Annual deposit amount = P

So, we can calculate the annual deposit amount by using following formula:

FV = P × (1+r) × [{ (1+r)^n - 1} ÷ r]

By putting the value, we get

$500,000 = P × ( 1 + 0.08) [{ (1+0.08)^24 - 1} ÷ 0.08]

$500,000 = P × ( 1.08) [{ (1.08)^24 - 1} ÷ 0.08]

$500,000 = P × ( 1.08) [{ 6.34118073724 - 1} ÷ 0.08]

$500,000 = P (72.1035)

P = $500,000 ÷ 72.1035

P = 6934.48

8 0
3 years ago
Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the first year of operation, Sweet paid $40,000
MrMuchimi

Answer:

$20,000

Explanation:

Calculation for Sweet's economic profit

First step is to calculate the Explicit Costs

Using this formula

Explicit Costs = Rent on building +Payment of Salary to employees + Utilities + Goods bought

Let plug in the formula

Explicit Costs = ($30,000)+ ($40,000) + ($20,000) +($10,000)

Explicit Costs =$100,000

Last step is to calculate Sweet's economic profit

Using this formula

Economic profit = Total Revenue – (Explicit Costs + Implicit Costs)

Let plug in the morning

Economic profit = $135,000 - $100,000 - $15,000

Economic profit= $20,000

Therefore Sweet's economic profit will be $20,000

4 0
3 years ago
Which one of the following will decrease the operating cycle?
Irina18 [472]

Answer:

B

Explanation:

3 0
3 years ago
How is chinese food made soo gosh darn good?​
vesna_86 [32]

Answer:

Worm noodles

Explanation:

5 0
3 years ago
Read 2 more answers
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