rance carrier used by Sharma Kennels specifies 90% coinsurance. The company recently incurred $455,000 in damages from a tornado. The building was valued at $630,000, but was only insured for $530,000. What will be paid by

rance carrier used by Sharma Kennels specifies 90% coinsurance. The company recently incurred $455,000 in damages from a tornado. The building was valued at $630,000, but was only insured for $530,000. What will be paid by

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You were in an accident that required surgery and five days of recovery in the hospital. Your total hospital bill reached $100,000. At the time of your accident you had previously paid nothing in health care costs for the year. Your health insurance has a deductible of $750 per year, a coinsurance rate for hospitalization of 10%, and an individual out-of-pocket maximum payment of $3000 for the year. How much must you pay out-of-pocket for your care in this situation?
Find the amount to be paid by the insurance company. Assume the policy includes an 80% coinsurance clause. Round to the nearest dollar. Replacement Cost of Building: $340,000 Face Value of Policy: $306,000 Amount of Loss: $2,500
Charles Prose insured his real estate office with a $300,000 fire insurance policy at a $.78 annual rate per $100. Nine months later the insurance company canceled his policy because Charles failed to correct a fire hazard. What was Charles’s cost for the 9-month coverage?
Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down payment. Assuming a rate of 8% on a 25-year mortgage, Craig's monthly payment is (use the table in the handbook): Multiple Choice None of these $1,431.30 $1,505.40 $1,505.04 ) $1,413.30 acer
Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. The principal after the first payment had a balance outstanding of: Multiple Choice $259,652.79 $207,722.24 $206,595.57 $258,244.46
The Zusi's sign a $300,000.00 mortgage, 2-year term, monthly payments at 7% c.m., amortized over 30 years. Payments 19 and 20 are missed (due to loss of income from some lousy pandemic). Calculate the balance owing at the end of the term.
Apollo Enterprises has been awarded an insurance settlement of $4,000 at the end of each 6 month period for the next 12 years. (Round your answers to the nearest cent.) (a) As the accountant, calculate how much (in $) the insurance company must set aside now at 6% interest compounded semiannually to pay this obligation to Apollo. (b) How much (in $) would the insurance company have to invest now if the Apollo settlement was changed to $2,000 at the end of each 3 month period for 12 years and the insurance company earned 8% interest compounded quarterly? (c) How much (in $) would the insurance company have to invest now if the Apollo settlement was paid at the beginning of each 3 month period rather than at the end? $
Mr. Harrington had a new heating system installed in his office. The balance owing to the heating company is $24,000 which includes equipment and installation fees. The heating company has agreed to let him make individual payments on the account whenever he’d like, but the final balance must be paid two years (24 months) from now. Starting today, interest will accumulate on the balance at 3.80% compounded monthly. Mr. Harrington will make a payment of $7000 4 months from now and $8000 18 months from now. What is the value of i (the periodic interest rate)? a. 0.001583 b. 1.900000 c. 0.009500 d. 0.003167
Mike Jones bought a new split-level home for $150,000 with 20% down. He decided to use Quicken Loans for his mortgage. Quicken was offering 3 3/4% for 25-year mortgages. Provide Mike with an amortization schedule for three periods. (Use Table 15.1) Note: Do not round intermediate calculations. Round your answers to the nearest cent. Payment number Portion to interest Portion to principal Balance of loan outstanding 1 241.96 $119,758.04 2 3 243.47 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625 0.21875 9.48394 6.72689 5.36014 4.54938 4.01651…
Apollo Enterprises has been awarded an insurance settlement of $3,000 at the end of each 6 month period for the next 11 years. (Round your answers to the nearest cent.) (a) As the accountant, calculate how much (in $) the insurance company must set aside now at 6% interest compounded semiannually to pay this obligation to Apollo. $ (b) How much (in $) would the insurance company have to invest now if the Apollo settlement was changed to $1,500 at the end of each 3 month period for 11 years and the insurance company earned 8% interest compounded quarterly? $ (c) How much (in $) would the insurance company have to invest now if the Apollo settlement was paid at the beginning of each 3 month period rather than at the end? $