Question 11 Consider a policy with a R10 000 deductible and a recapture factor of 5%. Determine the amount of the deductible the insured would pay for a loss of R45 000. 1 R 8 250 2 R 2 250 3 R36 750 4 R10 000
Q: 12) What is the annualized cost of the debt for a sinking fund that has semi-annual deposits and it…
A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…
Q: 1/1/14 12/31/14 12/31/15 Accumulated benefit obligation $2,500,000 $2,600,000 $3,400,000 Projected…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A bank is offering 2.501% interest on an investment of 7 years. If you invest OMR 10000 today what…
A: Future value is the value of present cashflow compounded to future date. formula: FV=PV×1+RN where,…
Q: Fact pattern: one-fourth represents secured and priority daims. 1. The "net free assets" are P75.…
A: Given details: Total assets = P200 The assets are expected to be realized at an average of 75% of…
Q: O Yes, if after-tax cost of debt (k) z 13.75% O No answer O No O Yes, if after-tax cost of debt (k)…
A: The levered firms are those firm that has the debt and equity in their financial structure whereas…
Q: 1. How much rent receivable should be recognized by SNOWMAN in 2021? ₱ 64,000 ₱ 80,000 ₱ 76,000…
A: solution working note lease rent for 2021 = 80000 total tenure of lease =5 years rent free…
Q: Problem 10: Use the following information for the next three questions: On January 1, 2021, DELAY…
A: Since you has posted multiple questions we will answer the first question for you as per the…
Q: Find the future value of this loan: $20,862 at 11.4% for 14 months. Group of answer choices A.…
A: Given information : Present value = $20862 Interest rate = 11.4% Time period = 14 months
Q: 9.7. You are to calculate rates effective for the year beginning Jan. 1, 2020 for one-year policies…
A: The amount of money an insurer is obligated to pay to cover claims, including the costs of…
Q: ou iust invested 549.000 that you received as an insurance settlement. How much more will this…
A: Money that is invested today earns interest. This makes the future value of money more than present…
Q: 4.35 points Save Answes "Saad invested SR1831981 in a fund that pays 10% annually. 1st withdraw…
A: Let the withdrawal of 1st year be = 1 now lets calculate cashflows of future years and thier present…
Q: The following shows an amortization schedule for a loan which calls for level semi-annual payments…
A: Outstanding Balance at the end of 1st installment = 9088.510 Installment year period = 3151.490…
Q: 12. What is the future value in 180 days of $200,000 deposited now at 9% p.a. simple interest?…
A: The concept of the time value of money states that due to the interest-earning capacity of money,…
Q: 1/1/14 12/31/14 12/31/15 Accumulated benefit obligation $2,500,000 $2,600,000 $3,400,000 Projected…
A: Formula: The amount of AOCI-net loss amortized = ( AOCL – net loss - The corridor for 2015 )/…
Q: Year Cash Flow 0 −$8,200 1 2,500 2 4,100 3 3,900 What is…
A: Profitability index- It is an index that gives a measure of a project's attractiveness. It is…
Q: D4) What is the interest income in dollars on a $10 million art financing loan priced at 8%…
A: A loan under which the borrower pledges his/her asset to get the loan is known as a collateral loan.…
Q: $140,000; 7% compounded annually; 10 annual payments Find the payment necessary to amortize the…
A: Given: Present value (PV) =$140000 Interest rate (r) = 7% Number of payments (n) = 10
Q: Question content area top Part 1 (Present value of a perpetuity) At a discount rate of…
A: A perpetual annuity is a long-term insurance policy that you pay for for the rest of your life. In…
Q: Consider a policy with a R5000 straight deductible. Determine the amount that the insurer would pay…
A: There are two parties in an insurance contract; one is the insurance taker and other is the…
Q: Compute for the Present Value in Perpetuity if the indefinite Cash Flows is Ᵽ 45,600 and the…
A: Please refer to the image below
Q: Assume you have the following asset and liability in your balance sheet Asset - Bond A Modified…
A: The answer is stated below:
Q: Find the periodie payment öf éách ôf the föllowing: No. of Payments Deferred Payments Present Value…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: The life insurance fund at the beginning of the year is OMR 2,300,000. During the year outstanding…
A: Closing balance of life insurance fund = Life insurance fund at the beginning - Outstanding interest…
Q: December 31, 2020 December 31, 2020 Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit…
A: Income Statement as on 31st December 2020 Particular Amount Amount Sales Revenue 657000…
Q: Problem 19 Marianne Company is a dealer in equipment. On December 31, 2019, Marianne Company sold…
A: Since the fair market value of the equipment and the fair market value of the note are not provided,…
Q: What's the present value of $4,000 discounted back 5 years if the appropriate interest rate is 4.5%,…
A: Discounting is a technique through which present value of the future amount is calculated. It is…
Q: Question text If the value of the subject matter of insurance is 20,000 dinars, the amount of…
A: Compensation:- In case of Insurance, a compensation is an amount which paid by the insurance company…
Q: 9. What is the present value of OMR12,500 to be received 10 years from today? Assume a discount rate…
A: Present value of future value is given by interest rate and discount rate.
Q: 4. How much is the gross investment that should be initially recognized as lease receivable? ₱…
A: The question is related to the to PFRS 16 Accounting for lease. The lessor should recognize gross…
Q: What is the present value of a 4 year annuity of OMR 10000 discounted at 10% Select one: a. NONE b.…
A: Annunity(PMT) is OMR 10000 Discount rate(r) is 10% Time Period(time) is 4 years To Find: Present…
Q: 5. What is the amount should be deposited today at 7.5% compounded quarterly in order to withdraw…
A: The amount of deposit can be calculated using the future value formula. The future value is the…
Q: 8. What annuity is required over 12 years to equate with a future amount of 20,000? Assume i = 6% A.…
A: The time value of money is one of the core principles used in finance. It states that the sum of…
Q: 1. January 1, 2020? a. 6,000,000 b. 5,000,000 c. 5,494,500 d. 3,850,000 2. What is the gain on…
A: Prevent value: Present value is the sum of the current value of money of future cash flows. It is…
Q: 24. You purchased a property at a 6% cap rate for $20,000,000. To buy the property you secured a…
A: Cost of property - $20,000,000 Cap rate – 6% LTV- 60% Debt yield - ? Calculating NOI: NOI =cap…
Q: 5. Asset valuation and risk Laura Drake wishes to estimate the value of an asset expected to provide…
A: In order to determine the value of the asset, we need to determine the Present values
Q: 8. Assuming you require a 15% rate of return, what will the net present value be? Initial Investment…
A: Since there are multiple questions are posted at a time, the answer for first is only provided.…
Q: Q7: What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%? Answer:…
A: Here, Details of Ques-7: Amount per year for perpetuity is P100 Discount Rate is 5%,7% and 11%…
Q: 11. The net premium for a 10,000 whole life insurance policy issued to (40) is 4,000. At the end of…
A: It is assumed that effective annual interest rate = 6% Given, Premium reserve at 10th Year = 7,000…
Q: plan A plan B plan C Down payment 1,789.91 2,309.65 3,764.51 Annual payments 5,097.70 7,450.16…
A: Annual payment (P) = 7450.16 Down payment (DP) = 2309.65 Discount rate (r) = 12% Years (n) = 20
Q: 2. Assuming that you obtain a bank loan for 500,000 with an annual interest payment of 10% of the…
A: In order to compute the present value of a loan at a given effective interest rate, we are required…
Q: Outstanding liability P'000 Interest charge P'000 Seven-year loan 25-year loan Bank overdraft 8,000…
A: Borrowing cost- It includes cost of interest, debentures are issued on discount, debenture are…
Q: If the value of the subject matter of insurance is 4000 dinars, the amount of insurance is 8000…
A: Principle of indemnity of insurance states that insurance should cover for actual amount losses…
Q: plan A plan B plan C Down payment 15,777 28,458 16,632 Annual payments 27,556 10,207 25,948 Years 20…
A: Down payment (DP) = 15,777 Annual payment (P) = 27,556 Years (n) = 20 Discount rate (r) = 11%
Q: 13. An analyst developed two scenarios with respect to the recovery of $100,000 principal from…
A: Expected recovery = Amount Recovered x Probability
Q: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in…
A: Net Present Value is defined as the difference between the present value of the cash inflows of the…
Q: plan A plan B plan C Down payment 1,340.97 2,001.11 3,691.53 Annual payments 5,482.23 7,995.51 9,373…
A: Here, Down Payment of Plan B is 2,001.11 Annual Payments of Plan B is 7,995.51 Time Period of Plan B…
Q: What is the current value of a security that pays P165,500 per year for 10 years if similar…
A: Annuity means where regular payment is made at the end of regular period and full amount with…
Question 11
Consider a policy with a R10 000 deductible and a recapture factor of 5%. Determine the amount of the deductible the insured would pay for a loss of R45 000.
1 R 8 250
2 R 2 250
3 R36 750
4 R10 000
Step by step
Solved in 2 steps
- Question 15 Consider a policy with a R5000 straight deductible. Determine the amount that the insurer would pay for a loss of R12 000. 1 R7 000 2 R5 000 3 R12 000 4 The insurer will not be liable for any payment.Chapter 10 Discussion Q2 A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is the present value (PV) at time 0, given that the interest rate is 11%? Show your steps. A) $2695 B) $4312 C) $5390 D) $3234PROBLEM 10 A developer deposits $84,720 for 7 months and earns $4055.46 in simple interest.Find the interest rate.
- QUESTION 16 A Bank lends a Nesta company. R500 000 for one year at 6.48% and requires a compensating balance of 10% of the face value of the loan. The effective annual interest rate associated with the loan is ... 7.00%. 7.20%. 8.00%. 8.90%.PART 1. SIMPLE INTEREST, SIMPLE DISCOUNT, PROMISSORY NOTE. a. What is the principal invested from June 10, 2020 which will amount to 50,000 on October 20, 2021 using 14.8% simple interest? b. Find the simple discount on 12,000 due at the end of 1 year and 6 months with 7.5% simple discount rate. How much is the proceeds? c. Five J’s company received a 100,00 promissory note at 10% simple interest for 9 months from one of its customers. After 6 months, the note was discounted at a bank at a discount rate 7.8%. How much did the company receive from the discounted note?Problem 5-6 Present Value of an Annuity Due (LG5-6)If the present value of an ordinary, 6-year annuity is $5, 600 and interest rates are 7.5 percent, whats the present value of the same annuity due?Note: Round your percentage answer to 2 decimal places (i. e.. 0.1234 should be entered as 12.34).
- 5.15(a) A loan of $20,000 is to be amortized in 10 level annual payments. The interest rate for the first 3 years is 4% while the interest rate for the subsequent 7 years is 6%. Calculate the loan balance B6 by; (a) the prospective method5.10 The following shows an amortization schedule for a loan which calls for level semi-annual payments over 2 years. Fill in the missing values in the amortization schedule and calculate the effective rate of interest. Year Installment Interest paid Principle repaid Outstanding balance 0 - - 0.5 9,088.510 1 2,969.710 1.5 122.380 2 3,151.4900 - 3,151.490 0Current liabilities Bon Nebo Co. sold 25,000 annual subscriptions of Bjorn for 85 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of 840,000 during the first calendar quarter of 20Y6. The federal tax rate is 40%. A quarterly tax payment will be made on April 12, 20Y6. Prepare the current liabilities section of the balance sheet for Bon Nebo Co. on March 31, 20Y6.