4. A liability insurance policy has a deductible of $100,000, a policy limit of $20,000,000 and co-insurance such that the policyholder pays 20% of the remaining claim. How much does the insurer pay if the loss is: (i) $50,000 (ii) $362,000 (iii) $20,065,000 (iv) $31,400,000

4. A liability insurance policy has a deductible of $100,000, a policy limit of $20,000,000 and co-insurance such that the policyholder pays 20% of the remaining claim. How much does the insurer pay if the loss is: (i) $50,000 (ii) $362,000 (iii) $20,065,000 (iv) $31,400,000

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Related questions

Q: 1. How much would the equal monthly payments be on a student loan of $10,500 that has a ten-year…

A: You mentioned only 1 and option A to solve, I will solve both of them but if you want I will solve…

Q: 1. Bob has his property insured for $200,000 even though the actual cash value of this property is…

A: Bob's insurance policy has a coinsurance provision of 90%, which means he should insure his property…

Q: Compute the accumulated value after 10 years of an annuity immediate that makes quarterly payments…

A: We have to find accumulated value of given annuity immediate. Formula required: For annuity…

Q: d) A company is offered a contract promising annual net returns of $22,000 for six years. If the…

A: Solution

Q: Assume you won Loto-Quebec! Instead of receiving the prize as a lump sum payment. you choose to…

A: Correct answer is option ( A) = -1/20

Q: Suppose you want to buy a Car. You have taken a loan of $25000 from a bank. You will pay monthly and…

Q: - DISASTER RELIEF After a terrible cyclone in Bangladesh, an international disaster relief…

A: Given information Amount at end of each=$25,000 Payment at end of each quarter Time=5 years Rate of…

Q: 10. A $35 000 loan for a recreational boat is charged 2.3% per year, compounded monthly. It is to be…

Q: Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the…

Q: Avicorp has a $10.0 million debt issue outstanding, with a 6.0% coupon rate. The debt has…

Q: 2. KPERS is the Kansas Public Employee Retirement System. This is a retirement system that takes 6%…

A: Given that :Employees pay taken = 6%Amoun added every year = 4%

Q: 32. LAWN-MOWER Ya Green Lawns, Ltd. T finance charge of 12 interest and (b) the co

Q: 7. Laura borrows $5000 for 5 years at an annual simple interests rate of 5% per year. a) What is the…

Q: (a) Consider a t distribution with 14 degrees of freedom. Compute P(12-1.64). Round your answer to…

A: t-distribution

Q: 4. A car dealer offers a compact sedan for 36 monthly payments of $447.59 at 9.5% interest,…

Q: Valeria bought a motorcycle for which she will pay $ 163.75 monthly for six years, with a financing…

Q: What lump sum should be deposited in an account that will earn 9% compounded quarterly to grow to…

Question

4. A liability insurance policy has a deductible of $100,000, a policy limit of
$20,000,000 and co-insurance such that the policyholder pays 20% of the
remaining claim. How much does the insurer pay if the loss is:

(i) $50,000
(ii) $362,000
(iii) $20,065,000
(iv) $31,400,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: About the problem:

VIEW

Step 2: Answer and Explanation:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

3. An account that pays 1.6% compounded monthly has $1,000 deposited every month. Find the value of the account at the end of the year.
Pro forma income statement, in won (millions) sales (1,000,000 @ 5,000 won/set)............. 5,000 costs..............................................................(4,000) labor-skilled....................................(1,700) raw materials: imported (duty-free)......................(1,000) local.................................................(500) overhead..........................................(300) interest.............................................(500) profit (before tax) 10%........................1,000 if the won devalues, from w484/$ to w580/$, recompute the statement assuming domestic sales remain the same
11. What lump sum do parents need to deposit in an account earning 10% compounded monthly so that it will grow to $80,000 for their son's college fund in 18 years?
If you wish to retire at age 67 and make $60,000 per year without affecting the principal of your retirement fund, how much do you need to deposit each month starting at age 22 with a fixed APR of 8% both before and after retirement?
2. How much must you deposit today into an account with quarterly compounding interest and an APR of 6% in order to have $30,000 in 10 years for a down payment on a house? Assume no additional deposits are made. How much of the money saved is interest?
Suppose that a certain car has the following average operating and ownership costs. Average Costs per Mile Operating-$0.24 Ownerships-$0.72 Total-$0.96 a. If you drive 30,000 miles per year, what is total annual expense for this car? b. If the total annual expense for this car is deposited at the end of each year into an IRA paying 7.8% compounded yearly, how much will be saved at the end of eight years?
st If you pay $8,800 for a 20-year zero coupon bond with a face value of $48,000, what is your annual compound rate of return? K ... Annual compound rate= % (Round to two decimal places.)
1. Kate (she/her) is considering buying or leasing a new car. The cost of the car, before tax, is $31,071.00. a. The lease would cost $108.12/week, including tax, and the term of the lease is 60 months. How much would Kate pay by the end of the 60 months? b. If Kate buys the car, she must pay 13% tax on the selling price. She can finance it for a biweekly amount of $251.79 for 72 months. How much does the car cost, including tax? How much will she pay to purchase the car? c. What are the benefits of each of the options for Kate?
2. An annuity provides a payment of n at the end of each year for n years. What is the present value of the annuity if the annual effective rate of interest is 1/n?
Mr johnson is a car sales agent in car company in MLBB nation where there is a new model of SUV. His manager gave him the details of the vehicle and ask him to identify its selling price. The details are as follows: down payment of 250,000; regular payment at the end of each month is 18230; term in 6 years; and interest is 12% compounded monthly.
10. A mortgage has an initial balance of $150,000 and is charged 5% yearly interest applied monthly. If a person makes a payment of $1000 each month, which of the following is closest to the mortgage balance after 3 months of payments? (1) $145,165 (3) $148,160 (2) $147,520 (4) $148,870
6) a. b. C. d. What is the present value of $15,000 received today, $2,500 received at the end of each of the next six years and $10,000 received at the end of the 7th year, assuming a required rate of return of 4.50% ? $38,143 $16,899.89 $29,990.22 $35,243