Driver Sanders has a poor driving record and pays triple the regular premium. The regular premium would be 2,100 and covers Sanders for all three classifications of insurance with a 500 deductible for auto collision. During the year, Sanders sideswiped a row of parked cars. Repairs to the parked cars cost 1,870, 4,950, 2,340, and 378 . Repairs to Sanders' car cost 490 . Compute the amount the insurance company paid out in benefits over the amount it received in premium for this policy.
Question 2
An investment guarantees to return a minimum of 9 compounded annually for 11 years. What is the total present value of 11 annual withdrawals of 3,00 . each? Use Tables 23-2A and 23-2B or a calculator.
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