Biology Forums - Study Force

Judy Baker borrowed 5,00 . and agreed to amortize the loan over 7 months by making monthly payments with interest of 9 compounded monthly on the unpaid balance each month. Compute the size of Judy's monthly payments. Use Tables 23-2A and 23-2B or a calculator.

Q. 2

An insured carries all three classifications of insurance, with a deductible of 500 for collision. The insured paid an annual premium of 1,720 . The insured backed into a car in a parking lot, causing 580 damage to the car of the insured and 1,770 damage to the other car. Compute the amount that the insurance company made from the insured this year.

Q. 3

15,00 . (present value) is borrowed today at 12 compounded quarterly. The loan will be amortized over 4 years with equal quarterly payments. Compute the quarterly payments that are required to exactly pay off the loan. Use Tables 23-2A and 23-2B or a calculator.

Q. 4

Universal Insurance Company does business in a state having no-fault insurance. An insured carries all three classifications of insurance, with a 500 deductible for collision. The insured paid an annual premium of 2,790 . The insured fell asleep at the wheel and had medical expenses for himself of 1,280 and auto repair expenses of 800 . Compute the amount that Universal Insurance Company premium was over the amount the insurance company paid in benefits.

Q. 5

Compute the present value of 12 semiannual payments of 6,00 . each if interest is 8 compounded semiannually. Use Tables 23-2A and 23-2B or a calculator.

Q. 6

Manley Insurance Company does business in a state having no-fault insurance. An insured carries all classifications of insurance, with a 500 deductible for collision. The insured paid an annual premium of 2,770 . The insured struck a telephone pole causing medical expenses of 2,340 for his passenger, 620 damage to his car, and 1,840 damage to property. How much more did Manley Insurance Company pay out on behalf of the insured than it received as his annual premium?

Q. 7

An investment guarantees to return a minimum of 8 compounded annually for 12 years. What is the total present value of 12 annual withdrawals of 3,500 each? Use Tables 23-2A and 23-2B or a calculator.

Ans. #1

5,00 .  6.79464 = 735.87 monthly payments

Ans. #2

0

Ans. #3

15,00 .  12.56110 = 1,194.16 quarterly payments

Ans. #4

1,210

Ans. #5

6,00 .  9.38507 = 56,310.42 present value

Ans. #6

1,530

Ans. #7

3,500  7.53608 = 26,376.28 present value

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