An investor is considering making an investment and is deciding between two possible alternatives: • A 6-month investment which can be purchased at a simple rate of discount of 4.15% p.a. • A bank deposit, for 6 months, offering an effective rate of interest of 4.35% p.a. Determine which of these two alternatives offers the higher rate of return.

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Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.