Answer: The correct answer is "B. lower".
Explanation: The insurance premium is one of the central elements of the contract since it is the price that the insured pays for the coverage he receives. Its value will depend on the type of risk insured and is always fixed in advance by the insurance company. It must be sufficient for the insurer to face the insured risk, calculating that not all the insured will need the coverage, that is, statistically, there is a probability that it will happen or not.
The premium is lower in a survivorship life policy as compared to the premium in a joint life policy.
In a 401k the employer usually matches a percentage and if you are lucky dollar for dollar, where in an IRA it is does an an extra option with a set amount of money usually 2500 or more for each IRA contribution.
Answer:
Explanation:
In order to find the highest amount david can pay or in other words the present value of the investment we would have to discount the cash flows
3000/1.08+3000/1.08^2+3000/1.08^3+3000/1.08^4+3000/1.08^5=11,978
Answer:
257 boxes
Explanation:
The computation is given below;
Daily Demand would be
= 5000 ÷ 365
Standard Deviation = 10 boxes
Lead Time = 2 Weeks + 3 Days = 17 Days
Service Level = 0.98
Reorder Point = avg(d) × LT + z × σd × sqrt(LT)
= 5000 ÷ 365 × 17 + 2.05 × 10 × 170.5
= 317
So, the number of boxes should be ordered is
= 317 - 60
= 257 boxes
First, we add up all the benefits that Gerome Houser gets from his job. That is,
$1,755 + $3,898 + $2,898 +$2,098 +$1,404 = $12,053
Then, we divide this amount by his annual salary and multiply the quotient by 100% to get the answer.
($12,053 / $45,623) x 100% = 26.4%
Therefore, Gerome Houser's rate of benefits is approximately 26.4%.
