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3 years ago

Why would anyone select a bank that has unfavorable overdraft policies

Business

1 answer:

OlgaM077 [116]3 years ago

6 0

Answer:

The person may not have options due to age and distance and disabilities.

Explanation

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Assume you have a property insurance contract which includes an 80% coinsurance provision. The insured building is worth $5,000,

BaLLatris [955]

Answer:

$1,500,000

Explanation:

in order for the insurance company to pay for all the damages, you should have purchased a policy that covered $4,000,000 in damages. Since the policy only covers $3,000,000, the insurance company will pay:

($3,000,000 / $4,000,000) x $2,000,000 (loss) = 0.75 x $2,000,000 = $1,500,000

3 0

3 years ago

Assume that in January 2017, the average house price in a particular area was $279,400. In January 2002, the average price was $

tatyana61 [14]

Answer:

2.38%

Explanation:

In January 2017 the average house price in an area was $279,400

In January 2002 the average house price was $196,300

Therefore the annual increase in selling price can be calculated as follows

t = 15

= ($279,400/$196,300)^1/15 -1

= 1.42333^0.06666 -1

= 1.02378 -1

= 0.02378 ×100

= 2.38%

Hence the annual increase in selling price is 2.38%

4 0

3 years ago

Suppose that you are a student worker in the statistics department and they agree to pay you using the random pay system. Each w

artcher [175]

Answer:

The probability of getting paid more than $6500 in 100 weeks is 0.6%

Explanation:

In this problem, we need to define a probabilty distribution for the money earned.

The 100-week payoff can be expressed as

$PO=40*L+80*H=40*(100-H)+80*H=4000+40H$

Being L the numbers of weeks we have low pay and H the weeks we have high pay.

Now, as it is a coin flip, H is a binomial random variable with p=0.5 and n=100

For a total pay off of more than 6500, H has to be

$6500=4000+40H\\\\H=2500/40=62.5$

That means that in at least 63 of the 100 weeks we have to get a high pay.

$P(H\geq 63)=1-\sum_{i=1}^{62} P(X_i)$

If we compute the individual probabilities we get P(H≥63)=0.006 or 0.6%.

8 0

4 years ago

Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $70,000 cash immediately

Setler [38]

Answer:

The net present value for each option is given below.

(1) $70,000 cash immediately

NPV = 70,000 * 1 = $ 70,000

(2) $24,000 cash immediately and a six-period annuity of $8,100 beginning one year from today, or

NPV = (24,000*1) + (8,100 *(1-((1+7%)^-6)/7%)) = $ 62,609

(3) a six-period annuity of $14,500 beginning one year from today

NPV = (14,500 *(1-((1+7%)^-6)/7%)) = $ 69,115

8 0

3 years ago

Analyzing and Computing Accrued Warranty Liability and Expense Waymire Company sells a motor that carries a 60-day unconditional

Elenna [48]

Answer:

the warranty expense reported is $138,000

Explanation:

a. The computation of the warranty expense that should be reported in its current period income statement is shown below:

= Given percentage × units sold × repair average cost

= 2% × 69,000 units × $100 per units

= $138,000

Hence, the warranty expense reported is $138,000

8 0

3 years ago