Alot of the time insurence companies get discounts with whomever is fixing the item or person. For example- for medical insurence alot of the major insurence companies have agreements with drug companies in order to lower the payment for the company.
Another thing is they pick people who are unlikly to call and disput a claim or have problems in general.
If a=0, then the denominator is equal to 0. Since you cannot divide by zero, you are not allowed to do this.
<h3>
Answer: $7,853.16</h3>
Work Shown:
A = P*(1+r/n)^(n*t)
A = 4750*(1+0.10/2)^(2*10)
A = 12,603.164099436
A = 12,603.16
That represents the account balance after 10 years. To find the interest only, subtract off the deposit amount.
interest = A-P = 12,603.16 - 4,750 = 7,853.16
