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Answer:
Insurance companies manages risk by balancing the low-risk drivers and the high-risk drivers. Insurance would charge higher rates for high risk drivers.
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Explanation:
Insurance companies manages risk by sorting out the people who have a lower chance of risking a crash, with people who have a higher chance of risking a crash. They do this by charging low rates to the people that have a lower chance of causing a risk. They charge them low because they are trustworthy, and don't need to rack up a lot of money quick if they ever get into a crash. Remember, insurance makes people pay monthly so they could use that money in a accident.
But, this is different for people with higher risk. People that have a high risk of getting into an accident would be charged with a higher rate than people with lower risk. Insurance companies charge them with higher rates because since higher risk drivers get are more likely to get into an accident, insurance companies want to make sure that they can get the money for the accident as soon as possible. Insurance companies are the ones that pay for the accident, and that's why most places require you to have insurance while you drive.
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Answer:
taxes and no money management
Explanation:
some comes out of taxes and you do not know what to do with so much money
Answer:
Hence, the annual operating cash flow is: $44860
Explanation:
Year 0 Year 1
Initital investment
Inflows $253,100
variable costs ($140,000)
fixed cost (53800)
Depreciton ($23,200)
Interest expense ($19,500)
Net cash inflows $16600
Tax at 40% ($6640)
Net Cashinflows after tax $9960
Add Depreciation $23,200
Interest net of tax $11.700
Operating cashflows $44860
Hence, the annual operating cash flow is: $44860
Answer:
$88,000
Explanation:
The computation of the pension expense for the year is shown below:
Service Cost $100,000
Add: Interest Cost $60,000 ($750,000 × 8%)
Add: Amortization of prior service cost $6,000
Add: Amortization of net loss $2,000
Less Expected return on plan assets $80,000 ($800,000 × 10%)
Pension Expense $88,000
We simply deduct the expected return on plant assets and the other values would be added to the service cost so that the pension expense could come
Answer:
The government can reduce GDP by either:
- lowering government expenses
- increasing taxes which will lower consumption
- or a combination of both
Explanation:
currently total GDP = $100 billion (C) + $40 billion (I) + $20 billion (G) + $10 billion (X) = $170 billion
since the full employment GDP = $120 billion, the government must lower the GDP by $50 billion before inflation starts to rise.
The government can reduce GDP by either:
- lowering government expenses
- increasing taxes which will lower consumption
- or a combination of both
We aren't given any more information regarding MPC or MPS, so it is not possible to calculate by how much should government spending be lowered or taxes increased.
