1. A Homeowners Policy which provides coverage on an “open perils” basis covers losses:

a. Caused by perils specifically listed in the policy as covered

b. From all causes or risks that the business faces

c. From all causes except those specifically listed in the policy as excluded

d. Caused by perils described in the policy

2. Suppose you must make 5 annual $1,000 payments, the first one at the beginning of year 5 (end of the 4th year from now). To accumulate the money to make these payments, you will make three equal deposits into an investment account, the first to be made one year from today. Assuming a 10% interest rate on the investment account, what is the amount of these three deposits?

(round to nearest dollar)

A. $1,098

B. $1,145

C. $1,260

D. $1,389