Bryan and Geena had purchased a house 10 years ago. They insured the house for RM650,000 with the clause of replacement cost insurance. The house has a useful life of 100 years with current market fair value of RM700,000. How much will Bryan and Geena collect for their loss, if their house is totally destroyed in fire? Explain your answer.

Q: Janet purchased a new house for $120,000, obviously not in New York. She paid $35,000 down and…

A: Cost of house = $ 120,000 Down payment = $ 35,000 Loan amount (PV) = 120,000-35,000 = $ 85,000…

Q: Mike Williams, a well-known real estate appraiser, just paid $390,000 for an insurance policy that…

A: Perpetuity amount= $390,000 Cash Flow Amount= $14,600 per year Rate of return=?

Q: Linda just graduated from college. Since she is starting her own business, it’s time to upgrade from…

A: The Simple Payback Period is a financial metric used to determine the length of time it takes to…

Q: If the market value of your home is $250000, but the replacement cost of the structure is $190000,…

A:

Q: Susan has purchased a whole life policy with a death benefit of $400,000. Assuming that she dies in…

A: Inflation erodes the value of money. Inflation is a situation of rising prices and hence one is able…

Q: Brooke is evaluating two alternatives for improving the exterior appearance of her Victorian-style…

A: The PV analysis provides the investor with information regarding the overall actual costs that the…

Q: our grandmother left you an inheritance that pays $440 at the end of each year for a total of 12…

A: Annual Payment = p = $440Number of payment = n = 12Time until First Payment = t = 5Interest Rate = r…

Q: The Butterfields recently lived through a major wind storm. The experts said it was not a tornado,…

A: To determine how much the Butterfields must pay out-of-pocket towards the repairs and how much their…

Q: Christina owns a condo in South Padre Island. She is considering buying flood insurance for her…

A: There is a 20% chance that the loss would be $100000 and 80% chance that the loss would be zero.

Q: Sam was injured in an accident, and the insurance company has offered him the choice of Php25,000…

A: Time value of money is a financial concept which is used to calculate the value of money in present…

Q: If the market value of your home is $250000, but the replacement cost of the structure is $190000,…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What would be the amount of adjustment if I sold my home for $604,000, with $13,000 on improvement.…

A: The adjusted cost basis of a property includes cost of improvements that add value to the home or…

Q: Anna bought a life insurance policy on her own life for a premium of P50,000 per annum for 10 years.…

A: Return on capital (ROC) is a ratio that can be used in ascertaining an organization's profitability…

Q: John presently owns an office building, which is 30 years old, and is considering renovating it.…

A: Income tax: The income tax refers to the amount that is paid by the taxpayer to the tax authority of…

Q: Your grandmother deposited $10,000 in an investment account on the day you were born to help pay…

A: Solution:- An amount deposited today somewhere earns interest. The amount invested in beginning is…

Q: Dave bought a Ford Mustang seven years ago for RM32,000. He has decided to sell it as he now needs a…

A: Rate of return refers to the minimum return that is being earned by the investors over the amount of…

Q: A pair of twins were given $20,000 on their birthday in 2020.  One twin purchased a car for $20,000…

A: When car is purchased then it is recorded as fixed asset and depreciation is charged every year on…

Q: Spongebob and his best friend Patrick Star have decided to open a bubble stand. Unfortunately,…

A: It is the income earned by an entity after incurring all the expenses. It is the net revenue left…

Q: Helen just graduated from college. Since she is starting her own business, it's time to upgrade from…

A: The simple payback period is the time it takes for an investment to recover its initial cost from…

Q: Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to…

A: Monthly saving refers to an amount that is saved each month and earns specified rate of interest for…

Q: Alex and Steve bought their current house 10 years ago for $355,000 and made a down payment of…

A: EAR = ((1+ r/n)^n) - 1 APR = (((1+EAR)^(1/n)) - 1) x (n)   Monthly Payment = Loan/ Monthly…

Q: You bought a house in 2004 for $150,000. Sadly, you suffered an injury. Your doctor prescribes water…

A: Here I suffered an injury and doctor prescribed water aerobics as physical therapy. So the cost of…

Q: am was injured in an accident, and the insurance company has offered him the choice of Php25,000 per…

A: Annuity is a type of investment where periodic amounts are paid or received over a fixed period of…

Q: Leon Fillmore's lifelong dream is to own his own fishing boat touse in his retirement. Leon has…

A: The concept of time value of money will be used and applied here. As per the concept of time value…

Q: 3. Saundra purchased $8,000 worth of cryptocurrency several years ago. She expects the value of the…

A: The alternative payment method known as a cryptocurrency was developed utilizing encryption methods.…

Q: Jaime found a 3 bedroom house for sale. Listing price is $275,000. He placed a bid of $260,000 on…

A: The buyer should think of various scenarios to the prevailing market conditionsFirst, he needs to…

Q: Explain Payment Caps and Negative Amortization?

A: Payment Caps: A payment cap is a customer protection that bounds the amount that your monthly…

Q: Jason received an amount of 1000.00 from his grandpa as a birthday gift. He decides to invest the…

A: Principal Amount, P = 1,000 Interest rate, r = 10% = 0.10 Time, t = 5 years Future Value, FV = P…

Q: Meg (single taxpayer) pays $1,900 in student loan interest. Her AGI is $77,000. What is her For AGI…

A: Lets understand the basics. Student loan interest deduction is lessor of interest paid and $2,500…

Q: Kurt won a lottery and will receive $1000 a year for the next 50 years. The current value of these…

A: The concept used in the question is know as the time value of money. In the question, it is given…

Q: Abdulrahman is 60 years of age and has a life expectancy of 15 more years. He wishes to invest…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Your mom just checked on findmassmoney.gov and found out that she has unclaimed property that is…

A: Future value is the estimation of current assets' value which are likely to be receive in future…

Q: Five years ago, Teresa purchased an investment property for $189,795.  He sold it today for…

A: Annualized rate of return is calculated using following equation Annualized rate of return = Ending…

Q: Mr. Russ T. Steele sells his old vehicle for $5000 (you get more if you private sale!) and pays cash…

A: The Equivalent Annual Cost: The Equivalent annual cost gives an estimate of the equivalent equal…

Q: The Rite family wishes to insulate the attic of their home to prevent heat loss. They are…

A: A financial concept known as net present value (NPV) calculates the present value of projected…