Answer:
Explanation:
check attached file for solution
Answer:
$8,000
Explanation:
Base on the scenario been described in the question, we are to use simple interest to calculate the given problem
We are given
Time = 2years
rate = 8%
Principal = $50,000
Simple interest formula is given below
I = PRT/100
Substituting the values into the question, we have
I = $50,000×8×2/100
I = $800,000/100
I = $8,000
Answer: Crowdsourcing.
Explanation:
A way of obtaining information or ideas from a large number of individuals for problem solving is Crowdsourcing. Crowdsourcing involves sourcing for information, ideas or resources from a large variety of users over the internet. In Crowdsourcing, various individuals team up to solving a common challenge.
A because you need to put people to practice
Answer:
(i) $240, (ii) will buy, (iii) will not buy, (iv) True
Explanation:
(i)
Actuarially fair price = 2% of $12,000
= (2 / 100) * $12,000
= $240
(ii)
will buy insurance because now the price of insurance is $240 which was $2,880(i.e 72000 × 4% ) previously for drivers with $56,000 in the bank i.e now the price of insurance is reduced so the drivers will buy the insurance.
will not buy insurance because now the price of insurance is $240 which was $140 (i.e 3,500 × 4%) previously for drivers with 3,500 in the bank i.e now the price of the insurance is increased so the drivers will not buy.
True because at the actuarially fair price of $240, the drivers with $3,500 in bank will not voluntarily purchase the insurance.
