Question
Asked Nov 19, 2019
2 views

Why do insurance companies offer discounts on new houses opposed to old ones?

check_circle

Expert Answer

Step 1

Insurance companies offer discounts on new houses opposed to old one because:

Step 2

Insurance premium depends on the risk accociated with the entity getting insured. When the risk associated is high, the insurance premium will be high and vice versa. The material...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Finance

Other

Related Finance Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: You have just celebrated your twentieth birthday and you believe you will spend Rs 120,000 a year fo...

A: PV of annuity is as follows:

question_answer

Q: What is the interest rate, monthly deposits, time amount, target Amount, actual Amount and different...

A: Calculation of interest rates as follows:

question_answer

Q: What is the % change in FCF

A: Calculate the present value as follows:

question_answer

Q: Using the P/E multiples approach to valuation, What is the estimated price of a stock if the firm’s ...

A: Calculation of estimated price of stock:Answer:Expected price of stock is $82.26

question_answer

Q: I need help with this problem and putting into an excel format with formulas. You are looking into ...

A: Initial Investment = $38 MillionCalculation of the Net Present Value by using excel is as follows:

question_answer

Q: A stock has had the following year-end prices and dividends:  Year   Price  Dividend 0   $ 43.2...

A: Calculation of Arithmetic and Geometric Average Return:The arithmetic average return is 9.57% and ge...

question_answer

Q: An investor has a portfolio of two securities, a stock with a beta of 1.24 and a risk-free asset. Th...

A: Suppose the weight of the stock in the portfolio be x, then the weight of the risk free asset in the...

question_answer

Q: Free cash flow valuation    Nabor Industries is considering going public but is unsure of a fair off...

A: a) Value of the firm can be calculated as the present value of all the future expected free cash flo...

question_answer

Q: Acme has branched out to rentals of office furniture to start-up companies. Consider a $3,000 desk. ...

A: Calculation of Break-Even Rate:The break-even rate is $562.32.Excel Spreadsheet: