How much insurance should they have carried to meet

Assignment Help Finance Basics
Reference no: EM13263614

George and Nancy had a $30,000 repair bill on their home after the tornado went through town. Their policy contained the usual 80% co-insurance clause. Their home's replacement value was $150,000; their policy coverage was $110,000 with a $250 deductible.

a. How much insurance should they have carried to meet the coinsurance obligation?
b. What percentage of this loss will the insurance company pay?
c. How much of the loss will George and Nancy have to absorb? (Show all work.)

 

Reference no: EM13263614

Questions Cloud

Discuss the possible alternatives for loading and hauling : Discuss the possible alternatives for loading and hauling that the contractor may consider for the project.
How did langston ward read poem : Read Walt Whitman's poem, which is the one Langston Ward recites out loud. What stands out for you in this poem? What do you hear as you read? What is it about?
Calculate the radius of the second coil : Two circular coils of current-carrying wire have the same magnetic moment. The first coil has a radius of 0.095 m, What is the radius of the second coil
Find a technical journal article related to the quality : Explaining if the author justifies his conclusion; and (4)discussing the merits of the paper to the real world. You should then prepare a maximum of 10 page paper about these points
How much insurance should they have carried to meet : How much insurance should they have carried to meet the coinsurance obligation?
Evaluate the half life of the sample : A sample contains 8.30×104 radioactive nuclei. In a time of 5 minutes, Evaluate the half life of the sample
What is the speed of the boat with respect to the ground : A boat is traveling upstream at 20 km/h with respect to the water of a river. The water is flowing at 4.0 km/h with respect to the ground. What is the speed of the boat with respect to the ground
Find what is the input power to the transmitter : A collector modulated transmitter has a supply voltage of 48 V and an average collector current of 600 mA. What is the input power to the transmitter. How much modulating signal power is needed to produce 100 percent modulation.
Topic returning home-impact of cultural differences : Prepare an essay on "Topic Returning Home-Impact of Cultural Differences"

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the aftertax cash flow from the sale

The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $175,000. If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset?

  What would a fully-taxable corporate bond have to yield

What would a fully-taxable corporate bond have to yield in order to produce the same after-tax return as the 5% municipal bond? Show work. Express your answer as a percentage rounded to two decimal places.

  Determining capital structure

Mention and describe three issues which a firm should consider when determining its capital structure.

  How much can you withdraw each year in your retirement

When you retire, you plan to withdraw an equal amount for each of the next 25 years at the end of each year and have nothing left. Additionally, when you retire you will transfer your money to an account that earns 6.75 percent.

  A semiannual interest rate swap contract

On 3/5/2012, you entered into a semiannual interest rate swap contract,

  Compute the companys current stock price

The Isberg Corporation just paid a dividend of $0.75 per share, and that dividend is expected to increase at a constant rate of 5.50% per year in the future.

  Explain capital budgeting involves calculation net present

Explain Capital budgeting involves calculation of net present value and The following information is associated with this project

  What does the bank balance sheet look like

Newhart Financial starts its first day of operation with $10 million capital, and receives checking deposits worth of $200 million.

  Level of operating efficiency

How can a government be tempted to take a profit cannot afford? What sounds better, $250,000 of increased services or $187,500 less in expenditures?

  Calculate the nper

Calculate the NPER given the following characteristics

  Financial markets objective questions

The cash flow assumption selected by a company need not correspond to the actual physical movement of the corporation merchandise

  Explain analysis of the financial statements with comparison

Explain Analysis of the financial statements with comparison of industry averages and prepare a columnar report for the controller of Heartland Inc

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd