Answer:
Avicenna can expect to lose money from offering these policies. In the long run, they should expect to lose ___33__ dollars on each policy sold
Step-by-step explanation:
Given :
The amount the company Avicenna must pay to the shareholder if the person die before 70 years = $ 26,500
The value of each policy = $497
It is given that there is a 2% chance that people will die before 70 years and 98% chance that people will live till the age 70.
The expected policy to be sold= policy nominal + chances of death
= 497 + [98% (no pay) + 2% (pay)]
= 497 + [98%(0) + 2%(-26500)]
(The negative sign shows that money goes out of the company)
= 497 - 2% (26500)
= 497 - 530
=33
Therefore the company loses 33 dollar on each policy sold in the long run.
when you get this kind of exercise, you just need to check which equations resemble the graph
A. y= 6-4x
y= -4x+6
B. y= -4x+8-2
y= -4x+6
C. y= -4x-8-1
y= -4x-9
D. y= -4x+6
-> A, B and D are the same equations
-> the easiest way to find which graph is correct (A/B/D OR C), is to create the graph yourself using the drawn graph:
y= ax+b
a= negative (the line goes down)
to find the a you go 1 step to the left and look which point of the graph has the same x. in this exercise it's when y=4
a=-4
b= the y-coordinate of the point where the graph cuts the y-axis.
b=6
-> graph shown in picture is y= -4x+b
-> graph A/B/D is correct
-> C is does not represent this line
Answer: g=p/2-20
Step-by-step explanation:
Answer: 8 years
Step-by-step explanation:
You can find this out use the Rule of 72. By dividing 72 by the fixed interest rate, you can estimate the amount of time it will take for an investment to double in size:
= 72/10
= 7.2 years
= 8 complete years
Example:
Assume they invested $1,000. Interest rate is 10%.
Amount after 8 years will be:
= 1,000 * (1 + 10%)⁸
=$2,143.59
<em>Investment is now more than double. </em>
