You had a car accident and needed another car immediately because you rolled out any other forms of transportation. A car dealer offers you $3,000 for your damaged car "as is" also, your insurance company estimates that there is $3,000 in damage to your car. The insurance company car fix the car right away in a repair shop belonging to this company. Because you have collision insurance with 1,000 deductibility provision, the insurance company mails you a check with only $2,000. The odometer reading on your damaged car is 48,000 KM. What should you do? Use seven-step procedure to analyze your situation. Additional information : -You have $8,000 in savings. - you can buy a newer car for $10,000 with odometer reading of 28,000 КМ. - after repairing the damage car, it can be sold for $5,000 - a discount repair shop charges $1,700 and requires 1 month. - a car rental for one month is $400.

You had a car accident and needed another car immediately because you rolled out any other forms of transportation. A car dealer offers you $3,000 for your damaged car "as is" also, your insurance company estimates that there is $3,000 in damage to your car. The insurance company car fix the car right away in a repair shop belonging to this company. Because you have collision insurance with 1,000 deductibility provision, the insurance company mails you a check with only $2,000. The odometer reading on your damaged car is 48,000 KM. What should you do? Use seven-step procedure to analyze your situation. Additional information : -You have $8,000 in savings. - you can buy a newer car for $10,000 with odometer reading of 28,000 КМ. - after repairing the damage car, it can be sold for $5,000 - a discount repair shop charges $1,700 and requires 1 month. - a car rental for one month is $400.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A major repair on the suspension system of Jane's 3-year old car will cost her $3.000 every 3 years henceforth (i.e., years 3, 6, and 9) because the warranty expired after 2 years of ownership. Also, she will spend $600 every 2 years (i.e., years 2. 4, 6, 8 and 10) for maintenance now that the warranty is over until she donates the car to charity in year 10. Use these costs to determine Jane's equivalent annual cost for years 1 through 10 at i = 5% per year.
An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: $950 Second birthday. $950 Third birthday: $1,050 Fourth birthday: $850 Fifth birthday: $1,150 Sixth birthday: $950 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $450,000. The relevant interest rate is 15 percent for the first six years and 7 percent for all subsequent years. Find the future value of the payments at the child's 65th birthday. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Sam bought a ring for $2,000 from Zales. He must pay at 6% sales tax and 9% excise tax. Since the Jeweler is shipping the ring, Sam must also pay a $20 shipping charge. What is the total purchase of Sam's ring?
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Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $15,400. He put $1,700 down and financed the rest with a 48-month, 8.0% loan. What is his monthly car payment by table lookup? (Use Table 14.2) (Do not round intermediate calculations. Round your answer to the nearest cent.) Monthly Payment
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es Kristen Lu purchased a used automobile for $28,600 at the beginning of last year and incurred the following operating costs: Depreciation ($28,600 + 5 years) Insurance Garage rent Automobile tax and license Variable operating cost Relevain ry The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $5,720. The car is kept in a garage for a monthly fee. Average fixed cost per mile Variable operating cost per mile Average cost per mile $ 5,720 $ 3,000 $ 1,500 $780 $ 0.11 per mile Required: 1. Kristen drove the car 22,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)
Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $15,300. He put $1,900 down and financed the rest with a 48-month, 8.0% loan. What is his monthly car payment by table lookup? (Use Table 14.2
John has 50/250/25 car insurance. Last week he caused a car accident that damaged the following:: Al's car = $2000 damage Bob's car = $6000 damage Charlie's car = $5000 damage Telephone pole = $4000 damage Guard rail = $5000 damage Based on John's insurance, how much will the insurance company have to pay for the damage?
Q2. While travelling to Dammam, Qassim is admitted to hospital for major car accident and need major surgery. His maximum out-of-pocket is SR15, 000. In your health insurance policy stated the following clause on coinsurance and deductible. Calendar year Deductible is equivalent to SR5, o00 and Coinsurance is 25%. The following is the charges from the treatment: Outpatient x rays and tests is SR5, o00 Ward and facility charges is SR20, o00 Surgeon's fee is SR, 10,000 Prescription drugs is SR7, 000 Therapy expenses is SR 8, 000 Plastic surgery is SR10,000 Dental is SR 5,000 Calculate how much you will get coverage from your insurance company based on the above charges. Your calculation will include: i. Deductible ii, Coinsurance Total out of pocket Total amount the insurance company will pay to you. iii. iv.

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