Aggregate Limits: place overall max on total amount of reimbursement (any-occupation) Benefit Period: disability income policy, max period of time that benefits will be paid Certificate Of Insurance: outlines benefits and policy provisions for group
Chapter 11 Solutions
1) a. Bernard's major medical policy paid $50,000, the episode limit. b. Bernard paid $32,951. Which is the total of $1,000, his deductible; $2,000, his share of the coinsurance; and $29,951, the portion of the loss that exceeded
Chapter 9 Solutions
1. a. Applying a 28 percent front-end ratio (.28 x $57,000) = $15,960, the Jensens qualify for a mortgage requiring total annual expenditures of less than $15,960. Their yearly housing costs would be [12($851 + $60) + $110 + $450]
Chapter 7 Solutions
1) a. The monthly payment for $2,800 at 16 percent for 4 years would be $79.35 PVA = CF[{1 1/(1+r)^t}/r] $2,800 = CF [{1 1/(1+(.16/12)^4(12)}/(.16/12)] therefore CF = $2,800 / 35.28546 = $79.35 b. Total finance charges are = [($
Annuity: a steady stream of payments over a specific time period Business (Economic) Cycle: wavelike pattern of rising and falling economic activity Compound Interest: interest earned that earns additional interest Employee Benefit: compensation othe
Chapter 14 Solutions
1) a. P / E = 20 (E = EPS), P=$15 therefore $15 / E = 20 and $15 / 20 = E = $0.75 b. D / $15 = 0.05 therefore D = $0.75 c. P / B = 1.5 B = $15 / 1.5 = $10 thus $10 x 100,000 = $1,000,000 2) $88 / X = 0.07 = X = $1,257 3) $83 / X
Chapter 2 Solutions
1. a. To calculate an investment assets-to-net-worth ratio for Victor and Maria, divide the value of their investment assets ($109,000) by their net worth ($208,555). The resulting ratio (0.52) suggests that 52 percent of the Hern
Chapter 15 Solutions
1) a. $13.25 10.00 = 3.25 therefore 3.25 / 10.00 = 32.5 percent b. $3.25 x 100 = $325 c. $325 x 0.25 = $81.25 d. Cannot determine with the information given. Mike would have to pay 25 percent of the reinvested dividends, but he w
Chapter 10 Solutions
1. a. The amounts covered by the insurance and those paid by the Connors for each type of loss is as follows: The dwelling {($24,000 $250) x [$68,400/($95,000 x .80)]} = $21,375 was paid by the insurance company, and $2,625 was
Chapter 8 Solutions
1) If Diana decides to purchase this car, she will be borrowing $21,700 ($24,700 $3,000) and her finance charges will be $3,020 [($515 x 48) $21,700]. If she leases the car, the capitalized cost after taking the capitalized cost
Chapter 16 Solutions
1. a. Stock A Market increase Beta Percentage increase Beginning value 1+ percent increase Likely value b. Stock A Market increase Beta Percentage increase Beginning value 1+ percent increase Likely value c. Stock A Market decrea
APR: relative cost of credit on yearly basis expressed as percentage rate Average Daily Balance: sum of outstanding balances owed each day during the billing period divided by the number of days in the period Balance Transfer: payment on credit card