Manley Insurance Company does business in a state having no-fault ...

[LaDunn]

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?

Question 2

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.

[snackralk]

Answer to Question 1

1,530

Answer to Question 2

3,500  7.53608 = 26,376.28 present value

[LaDunn]

Wow, this really help

[tranoy]

Thanks for the timely response, appreciate it