The owner of a house worth 180000 purchases an insurance, Ask an Expert

Finance

The owner of a house worth $180,000 purchases an insurance policy at the beginning of the year for a price of $1, 000. The deductible on the policy is $5, 000.

If after 6 months the homeowner experiences a casualty loss valued at $50,000. what is the homeowner's net loss? Assume that the continuously compounded interest rate equals 4.0%.

(a) $6,020

(b) $11,020

(d) $51,020

(e) None of the above.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9799424

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Suppose that the annual interest rate is 10 percent in the

Suppose that the annual interest rate is 1.0 percent in the United States and 3 percent in Germany, and that the spot exchange rate is $1.25/€ and the forward exchange rate, with one-year maturity, is $1.35/€. Assume tha ...

Estimate cost of capital for a 10-year project with a

Estimate cost of capital for a 10-year project with a market risk B=1.2. Assume expected market return is 10%.

What is the exploration of the effect on npv of changing

What is the exploration of the effect on NPV of changing multiple project parameters called?

Squash delight inc has the following balance

Squash Delight Inc. has the following balance sheet: Assets Cash $ 45,000 Accounts receivable 295,000 Fixed assets 772,000 Total assets $ 1,112,000 Liabilities Accounts payable $ 296,000 ...

What is firm level strategy in business define and

What is firm level strategy in business? Define and explain

Question one 11 what is meant by each of each of the

Question one: 1.1. What is meant by each of each of the following statements? a. "The present value of the future cash flows expected from an investment project is R30,000,000". b. "The net present value (NPV) of an inve ...

Your accounts receivable clerk m adams to whom you pay a

Your accounts receivable clerk, M Adams, to whom you pay a salary of $2,175 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $118,900 as shown in the ledger ...

Forecasting problem -double exponential smoothing using the

FORECASTING Problem - Double Exponential Smoothing: Using the Durable Marbles Inc. - a company with corporate head office in Europe, table data given below, compute the exponential smoothing with smoothing coefficients o ...

Question - you work for a nuclear research laboratory that

Question - You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $. 2,000,000, and it wou ...

You are planning to make annual deposits of 4440 into a

You are planning to make annual deposits of $4,440 into a retirement account that pays 9 percent interest compounded monthly. How large will your account balance be in 32 years? (Do not round intermediate calculations an ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert