9.7. You are to calculate rates effective for the year beginning Jan. 1, 2020 for one-year policies using the loss cost nethod. You are given the following data: Accident Earned Exposure Earned Ultimate Losses Year Units Premium (Fully Developed) 2017 855 750,015 572,850 2018 886 780,120 564,825 You are also given: (i) Rates are based on a weighted average with weights of 40% on 2017 and 60% on 2018. (ii) Trend is 5%. (iii) The permissible loss ratio is 65%. Calculate the gross rate.

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.