A company estimates that 0.9% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $450. If they offer a 2 year extended warranty for $58, what is the company's expected value of each warranty sold? * For help, go to 3 minute mark in Video. $

Q: An account with an initial balance of 1500 earns 7% interest for 1.5 years. What is the ending…

A: Given:   Initial Amount P = 1500   Interest rate r = 7%   Time = 1.5 years   Find ending balance A…

Q: You have a credit card that has a balance of $12,000 at an APR of 18.99%. You plan to pay $600 each…

A: Solution:-The loan amount on the credit card i.e. PV =$12000APR =18.99% p.a. i.e. 18.99/12 =1.5825%…

Q: balance of $11,660 at an APR of 16.99%You plan to pay $500 each month in an effort to clear the debt…

A: Solution:-The loan amount on the credit card i.e. PV =$11660APR =16.99% p.a. i.e. 16.99/12 =1.41583%…

Q: A credit card offers no interest no payments for 12 months. You make a purchase of $3500. You make…

A: purchase made A= $3500 monthly payments m= $300 Amount made during the first year (11 payments)…

Q: Assume you have a home that would cost $265,000 to replace. You currently have the home insured for…

A: Insurance is sharing of risk of damage with insurance company by payment of small premium.

Q: You start with $4 in your investment. Your money doubles every 6 years. How much money will your…

A: It is given that  $4 is the initial investment and the money doubles within 6 years. That is,…

Q: You accept a new job with a starting salary of 48,000. Because of your stellar preformance at work,…

A: The starting salary of the new job is 48,000.Percentage of salary raise at the start of second year…

Q: You put ​$200 per month in an investment plan that pays an APR of 4.5​%. How much money will you…

A:

Q: Vhich of the following 1-year investment has the highest rate of return? O $3,500 that yields $700…

A: The value of money that is the purchasing power decreases over time. So, whenever we make an…

Q: You owe $2300 on a credit card with 21% APR if you pay $80 a month, how long will it take you to pay…

A: Formula for the loan amortization is  A=Pi(1+i)n(1+i)n-1 where A=periodic payment P=loan amount…

Q: At age 18, someone sets up an IRA (individual retirement account) with an APR of 8%. At the end of…

A: Deposit at the end of each month

Q: You promise your nephew that you will give him $1 on his first birthday and double that amount every…

A: Please refer the attached image for complete solution.

Q: For 25 years, you deposited $4500 each year into an investment account that earned 6.5% interest.…

A:

Q: Pretend that you buy a $200 dollar stock. A. If the price goes up 10% on Monday, up 5% on Tuesday,…

A:

Q: At age 21, someone sets up an IRA (individual retirement account) with an APR of 4%. At the end of…

A:

Q: You invest $10,000 in the Big Delta mutual fund. Over 5 years, your investment grows in value to…

A: According to the given data Initial investment is $10000 After 5 years it becomes $17320 That means…

Q: If Jessica borrows $4,500 at 6 7/8% simple interest for 4 years, how much interest will she pay?…

A:

Q: Daisy Rose has a credit card that charges a finance charge on the previous balance according to the…

A: Solution: Given: Daisy Rose has a credit card that charges a finance charge on the previous balance…

Q: A person owes $1000 on a credit card that charges an interest rate of 2% per month. Complete this…

A: solutionGivenInterest rate=2% per monthowes=1000$

Q: A 128-day, $100,000 T-bill was initially issued at a price that would yield the buyer 1.19%. If the…

A:

Q: After retiring, you want to be able to take $1000 a month for a total of 15 years from your…

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Q: Suppose you want to have $700,000 for retirement in 25 years. Your account earns 9% interest. How…

A: