Author Question: Sarah purchased a Personal Auto Policy with liability limits of 50/100/25. Sarah ran a stop sign and ... (Read 104 times)

FButt · **on:** Jul 11, 2018

Sarah purchased a Personal Auto Policy with liability limits of 50/100/25. Sarah ran a stop sign and hit a van. The van sustained 15,000 in damages.

The following bodily injuries were suffered by passengers in the van: Passenger 1, 15,000; Passenger 2, 60,000; and Passenger 3, 10,000. Sarah sustained 5,000 in medical expenses, and Sarah's car sustained 10,000 in damages. How much will Sarah's insurer pay under Part A: Liability Coverage?
A) 90,000
B) 100,000
C) 115,000
D) 125,000

Question 2

The present value of 1,000 to be received in 5 years is ________ if the discount rate is 12.78.

A) 368 B) 687 C) 494 D) 548