This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: InsuranceYour house is worth $40,000 and the price of housing is not changing. Currently, you have ... (Read 407 times)

Hunchojack2019!!

  • Full Member
  • ***
  • Posts: 149
on: Nov 23, 2022
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
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
Buy Test-Bank


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
Reply #1 on: Nov 23, 2022
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
Great answer, keep it coming :)

steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Would you put one of these in your house? :D Would you put one of these in your house? :D
Effect of Perceived Price of a Drug on Placebo Analgesia Effect of Perceived Price of a Drug on Placebo Analgesia
In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th
How to choose the right payment plan with changing conditions (Question 3) How to choose the right payment plan with changing conditions (Question 3)
The climate is changing rapidly, and greenhouse gases are the most likely cause. The climate is changing rapidly, and greenhouse gases are the most likely cause.
The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ... The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ...
Video: Introduction to Sickle Cell Anemia

For a complete list of videos, visit our video library