Coverage A has a $400 Deductible and a $1,500 Premium. Coverage B has a $1,000 Deductible and a $750 Premium. If Coverage B is selected, how many months would it take to save the difference in the deductibles? Answer= ? An insured has a $7,000 loss. Their policy has a $1,000 deductible. How much will the insurer pay to the insured? Answer= ?
Q: The following information relates to National Company Limited. Gross FNPF wages $250 $225 Names Lal…
A: Gross wages is the amount of wages that includes bonuses, overtime and other benefits. Gross wages…
Q: A bond pays dividends of $110 at the end of each year. If the bond matures in 20 years, what is the…
A: Bond valuation is a method that is used to determine the theoretical value that should be assigned…
Q: During the current tax year, Roger disposed of his entire interest in a passive activity in a fully…
A: The non-regular activities of a business are considered a passive activities. Passive income can be…
Q: answers
A: Depreciation refers falls over the value of an tangible asset period of time due to usage,…
Q: Don Williams received a memo requesting that he complete a trend analysis of the following numbers…
A: Only to make the financial statements will be futile unless or until they are analysed and…
Q: On April 1, 2023, Baker Construction, Inc. signed a note for a loan from its bank. The following are…
A: Q7. 01-04-2023 Cash A/c Dr 100000 To Notes payable 100000…
Q: The ledger of Larkspur Company at the end of the current year shows Accounts Receivable $92,000,…
A: In case of bad debts written off, we will credit accounts receivable and Debit bad debt expense…
Q: dit will be fully refundable for 2021 and her Other Dependent Credi redit is limited by her tax…
A: Child tax credit refers to the form of a tax credit allowed to the parents of dependent children by…
Q: Compute for the gross ta income of Dapitan below
A: Gross income is the income that available from all possible sources of income and that is the…
Q: Benson Plastics Company deposits all receipts and makes all payments by check. The following…
A:
Q: Allocating a transaction price to multiple performance obligations includes which of the following…
A: IFRS 15 Revenue from Contract with Customers prescribes five steps to recognize the revenue :…
Q: The trial balance of Pacilio Security Services, Incorporated as of January 1, Year 3, had the…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: From the following, calculate the cost of ending inventory and cost of goods sold for the…
A: In the weighted average method of inventory valuation, ending inventory and cost of goods sold are…
Q: Hardwood Supplies Inc. purchased a 12-month insurance policy on March 1, 2017 for £3,000. At March…
A: Solution: Correct answer : (c) Debit to insurance expenses and credit to prepaid insurance for…
Q: OfficeMart Inc. has “cash and carry” customers and credit customers. OfficeMart estimates that 30%…
A: A cash collection schedule means showing a pattern in which a business expects to collect cash from…
Q: The following accounts appear in the ledger of Monroe Entertainment Co. All accounts have normal…
A: Assets :— It is the resources owned by company in the business. Example :- Accounts Receivable,…
Q: Requirement 1 Prepare the General Journal entry to record the purchase of the supplies on July 1.…
A: SOLUTION:- Requirement 1- July 1 purchase of supplies Date Account Titles Debit Credit Jul-01…
Q: References Knowledge Check 01 Dern Company recently sold a large order of tables to Knoll Furniture…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: Question 15 The balance in the supplies account on June 1 was $5,200, supplies purchased during June…
A: Solution A journal entry is prepared to record the transaction of the business in the books is a…
Q: Croyden is a calendar year, accrual basis corporation. Mr. and Mrs. Croyden (cash basis taxpayers)…
A: SOLUTION:- Computation of taxable income Amount Croyden's revenues from sale of goods…
Q: Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: Questions True False The balance sheet provides owners with an estimate of the firm's worth for a…
A: Since multiple questions have been posted, as per the guidelines only the first question will be…
Q: Instructions At the beginning of the current year, Willow Company adopts a pension plan and awards…
A: Defined Benefit Pension Plan - A defined benefit pension plan is one in which the employer…
Q: At December 31, 2017, bere any year-end adjustments, Cable Car Company's Insurance Expense account…
A: Insurance premiums are the costs to cover the risk. Sometimes a company pays for a future period of…
Q: d in exchange she will receive $170,000 over 000 payment should Anne include in gross in mediate…
A: Annuity - An arrangement between a person and the insurance company to make a number of smaller…
Q: Kate's grandmother promises to give her $5,000 at the end of four years and $6,000 at the end of…
A:
Q: Karen Company has 22,800 beginning finished goods units. Budgeted sales units are 182,400. If…
A: Production Budget :— This budget is prepared to estimate the number of required unit to be produced…
Q: Estimate ending inventory using the dollar-value LIFO retail method. be entered as 12.34%.))
A: The LIFO method is defined as one of the important methods of inventory calculation in which the…
Q: Fritz Benjamin buys a car costing $10300. He agrees to make payments at the end of each monthly…
A: Interest expense is one of the non-operating item that shows in the income statement. It stands for…
Q: Given the following: January 1 inventory. April 1 June 1 November 1 Cost of ending inventory Number…
A: Inventory valuation method includes: FIFO Method LIFO Method Weighted average cost method FIFO…
Q: I. Broncos Co. reports pretax financial income of $70,000 for 20x1. The following items cause…
A: Net taxable income is the amount of income on which the taxpayer must pay taxes. It is computed by…
Q: Under the assumption that KMS's market share will increase by 0.23% per year, you determine that the…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Estimating Useful Life and Percent Used Up The property and equipment section of the lululemon…
A: The property plant and machinery represent the non-current asset of the company which will be used…
Q: Muskoge Company uses a process-costing system. The company manufactures a product that is…
A:
Q: Calculating Gross Income with Gratiuities
A: It has been mentioned that the gratuity is paid which has been based upon the food sales while as…
Q: How can an organization prevent budgetary slack in the budgeting process since the bonuses of…
A: Budgetary slack can be prevented by thr following ways :- 1) By having a small group of managers for…
Q: P3-4 Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item PK95 are as…
A: FIFO Method Date Purchase Cost of goods sold Balance Units unit cost total units Unit…
Q: Tony Madison needs $382,000 in 10 years. Click here to view factor tables. How much must he invest…
A: FUTURE VALUE OF ANNUITY Future Value of Annuity Factor is Calculated to find out how much worth…
Q: Kim Morris purchased Print Shop, Inc., a printing business, from Chris Stanley. Morris made a cash…
A: Fair and Reasonable Income measurement policies means that the income measurement should be done…
Q: Which of the following items does NOT cause a difference in the bank balance and the book balance on…
A: Introduction: Companies prepare bank reconciliation at the regular intervals to identify differences…
Q: estate prices in a city have been increasing at an exponential rate of 2.7% per year. If the value…
A: Answer : Todays expected to be OMR = 168,789.92 Exponential rate = 2.7%
Q: I cant follow this.
A: Part a 1:
Q: E Co. has incurred $10,000 in costs to issue bonds. The costs are fees paid to a transfer agent,…
A: Here asked for multi question we will solve for first question for you. If you need additional…
Q: Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item…
A: Inventory valuation method includes: FIFO Method LIFO Method Weighted average cost method FIFO…
Q: Problem 16 The Milford Motel (MM) has two major operated departments: rooms and food. The following…
A:
Q: Prepare a direct materials budget for silicon and solution, and a direct labor budget.
A: Lets understand the basics. Management prepare master budget and other budget based on the various…
Q: Alyna owns a sole trading business that sells kids clothing. She purchased stocks from several…
A: Statement of comprehensive income is the one which is used to depict the profits of the entity.…
Q: E6.21 (LO 5) (Transfer of Receivables) Use the information for Jones Company as presented in E6.20.…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
PLEASE ANSWER WITHIN 30 MINUTES.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- For life insurance policies, some of the premium pays for the cost of the insurance, and the remainder goes toward the cash value of the policy and earns interest like a savings account. Consider the following insurance company options. Company 1: pays 4.2% compounded monthly on the cash value of their policies Company 2: pays 4.21% compounded semiannually on the cash value of their policies What is the APY offered by each company? (Round your answers to the nearest hundredth.) Company 1 % Company 2 %In calculating insurance premiums, the actuarially fair insurance premium is the premium that results in a zero NPV for both the insured and the insurer. As such, the present value of the expected loss is the actuarially fair insurance premium. Suppose your company wants to insure a building worth $390 million. The probability of loss is 1.29 percent in one year, and the relevant discount rate is 3.1 percent. a. What is the actuarially fair insurance premium? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. Suppose that you can make modifications to the building that will reduce the probability of a loss to .80 percent. How much would you be willing to pay for these modifications? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) a. Insurance premium b. Maximum costFor life insurance policies, some of the premium pays for the cost of the insurance and the remainder goes towards the cash value of the policy and earns interest like a savings account. consider the following insurance company options. Company 1: pays 4.5% compounded monthly on the cash value of their policies Company 2: pays 4.52% compounded semi annually on the cash value of their policies what is the APY offered by each company? (round your answer to the nearest hundredth)
- If life insurance is pledged as collateral for a loan, how much can be borrowed? face value of the policy cash surrender of the policy an amount equal to the annual premium O only 50% of the face value of the policyThe Perpetual Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $19,500 per year forever. a. If the required return on this investment is 6.1 percent, how much will you pay for the policy? b. Suppose the Perpetual Life Insurance Company told you the policy costs $500,000. At what discount rate would this be a fair deal?your bank also requires that the monthly mortgage payments include properety tax and homeowners insurance payments. if the property tax is 1,710 per year and the properety insurance is 1458 per year for (PITI) what is the total monthly payment in $?
- Suppose you have just purchased your first home for $550,000. At the time of purchase you could only afford to commit to a down payment of $55,000. In order to make the loan, the lender requires you to obtain private mortgage insurance (PMI) on their behalf. Suppose over time you paid down the principal of the loan to $535,000 and at that point in time you can no longer make any mortgage payments (i.e., you default on the loan). If the lender were to foreclose on your property and sell it for $508,000 (net proceeds), what would the lender's loss of principal be taking into consideration the protection of mortgage insurance? (Let's assume that the PMI in this case covers the top 25% of the loan.)A life insurance company pays investors 4% compounded annually on its five-year GICs. For you to be indifferent as to which compounding option you choose, what would the nominal rates have to be on GICs with quarterly compounding?The buyers paid $6,125 for a 1 point origination fee and a 1.5 discount point fee, what is the amount of their loan? If the buyers are obtaining an 80 percent LTV, what is the purchase price of their new home?
- Imagine you borrow $490 from your roommate, agreeing to pay her back $490 plus 7 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.49 percent. What is the total dollar amount you will have to pay her back in year? What percentage of the interest payment is the result of the real rate of interest? (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 17.54 or 17.54%.)If annuity A has 30 payments of $500 at an interest rate of 10% and annuity B has 30 payments of $500 at an interest rate of 9%, which one has the higher present value? Select one: a. Not enough information to determine. b. B c. AA borrower is seeking an FHA-insured loan. He will put the minimum 3.5% down payment and pay the upfront mortgage insurance fee of 1.75%. He will pay the annual mortgage insurance fee of .85% for the life of the loan. His interest rate is 5%, the APOR (as of the date the loan interest rate is locked) is 4.672%, and his APR for this loan is 6.474%. Is this a High cost mortgage loan or a Higher priced mortgage loan or both?