This topic contains a solution. Click here to go to the answer

Author Question: InsuranceYour house is worth $40,000 and the price of housing is not changing. Currently, you have ... (Read 398 times)

Hunchojack2019!!

  • Full Member
  • ***
  • Posts: 149
Insurance

Your house is worth $40,000 and the price of housing is not changing. Currently, you have $30,000 in a savings account that pays no interest. There is a 1.25 percent chance of a fire during the next year. If the fire occurs, there will be $30,000 worth of damage. If you do not purchase insurance and a fire occurs, you will pay $30,000 to repair your house. What is the expected value of your wealth (including the value of your home and your savings account) at the end of the year?
An insurance company offers you a fire insurance policy. If a fire occurs, it will pay to repair your home. The fire insurance is fair if the premium for the policy equals the expected value of the claim the insurance policy will have to pay. What premium would you pay for a fair insurance policy?
Please round your final answer to two decimal places.
◦ $69,625.00, $375.00
◦ $68,625.00, $29,625.00
◦ $68,625.00, $375.00
◦ $69,625.00, $29,625.00


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Hunchojack2019!! on Nov 23, 2022

miro2222

  • Full Member
  • ***
  • Posts: 177
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 56% of students answer this correctly




Hunchojack2019!!

  • Member
  • Posts: 149
Reply 2 on: Nov 23, 2022
:D TYSM


cdmart10

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

For a complete list of videos, visit our video library