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 $45,000, what is the homeowner's net gain/loss? Assume an opportunity cost of capital of 4.0% annually.
A) $0
B) $1,000
C) $5,000
D) $6,020
D
Business
You might also like to view...
What is the easiest pricing goal for a firm to implement?
a. meeting competition b. return on investment c. profit-based d. sales volume-based
Business
Functional names differ from evocative names in that functional names ________
A) are derived from the basic benefit provided by the product B) do not have any association with a core customer benefit C) are built from root words and morphemes D) are poetic constructions based on the rhythm of saying them E) are associated with positive attributes or feelings
Business