A homeowner insured a house for 150,00 . for one year at a premium rate of 5.00 per thousand. The homeowner canceled the policy during the year. The insurance company has a penalty of 15 for short-rate refunds. Compute the amount of the penalty.
Q. 2John Christopher, a low-risk driver, is insured by a company that gives a 10 discount for the first year, 20 the second year, 25 the third year, and 30 every year thereafter. Christopher has qualified as a low-risk driver for the last 5 years. Compute the amount Christopher saved in premiums if the regular premium is 1,000.
Q. 3Brendina Gillespie wanted to buy a new car. A bank would loan the sum of 18,00 . if Brendina would repay the loan over two years. Compute the size of the monthly payment that Brendina needs to pay in order to amortize the loan with interest of 12 compounded monthly on the unpaid balance. Use Tables 23-2A and 23-2B or a calculator.
Q. 4Driver Blake, a low-risk driver, is insured by a company that gives a 5 discount for the first year, 10 the second year, 15 the third year, and 20 every year thereafter. Blake has qualified as a low-risk driver for the last 10 years. Compute the amount Blake saved in premiums if the regular premium is 2,000.
Quick Reply
