A burglar enters Marcia's home and steals $10,000 worth of appliances. Marcia tells the insurance company that the appliances were worth $20,000. This overstatement of the loss is an example of:

A) a morale hazard
B) a peril
C) insurance fraud
D) carelessness

C

Business

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Which of the following is NOT an example of a demographic segmentation variable?

A) lifestyle B) income C) ethnicity D) gender E) age

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You are going to pay $800 into an account at the beginning of each of 20 years. The account will

then be left to compound for an additional 20 years until the end of year 40, when it will turn into a perpetuity. You will receive the first payment from the perpetuity at the end of the 41st year. If the account pays 14%, how much will you receive from the perpetuity each year (rounded to nearest $1,000)? A) $150,000 B) $160,000 C) $170,000 D) $140,000

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