The Tigerthan family has a basic health insurance plan that pays 85 percent of supplementary medical...

The Tigerthan family has a basic health insurance plan that pays 85 percent of supplementary medical expenses after a deductible of $300.0 per person. If three family members have prescription drug and other insured expenses of $1,980, $4,500, and $2390, respectively, how much will the Tigerthans and the insurance company each pay? [2 pts] (Show your calculations)

Naden Lucki pays $9,500 for an investment that pays an annual dividend of $500. The investment has a face value of 15,000 payable on the maturity date. If Naden holds the investment until its maturity date in 2023 (3 years’ times), what will be her holding return (%) on investment? What will be the annualized return on her investment? (Show your calculations)

Jack Linton purchased 100 shares of stock for $25.0 per share. During the year, he received cash dividend amounting to $200. After four years, Jack sold the stock for $45.0 per share. What was his holding period return (%)? What was Jack’s annualized return on the stock? What is the dollar amount of Jack’s return? (Show your calculations)

Emily DiDonato is considering buying stock on margin. She wants to buy $85,000 in stock; she will put 30% down and borrow the remaining $59,500 at 10% interest. (a) if Emily’s investment goes up by 45 percent after one year, and she pays off her loan, how much will she make in dollars? What percent rate of return does this represent? (b) If Emily’s investment instead drops by 18 percent, how much will she lose in dollars? In terms of a percentage loss how much will she lose? [6 pts] (Show your calculations)

Expert Solution

Tigerthan Family

Description	Tigerthan Family Member 1	Tigerthan Family Member 2	Tigerthan Family Member 3
Drug and other insured expenses	$1,980.00	$4,500.00	$2,390.00
Deduction of $300 per person	$300.00	$300.00	$300.00
Total Amount	$1,680.00	$4,200.00	$2,090.00
Insurance Company will pay 85 percent of supplementary medical expenses	85%	85%	85%
Amount that Tigerthan family will get from Insurance Company	$1,428.00	$3,570.00	$1,776.50
	Total amount that insurance company will pay to Tigerthan family is $6,774.50

Naden Lucki

	Naden Lucki Initial Investment	$9,500
	Annual dividend	$500
	Face value payable on the maturity date	$15,000
	Maturity time	3


	Holding return (%) on investment	{Income + (End Of Period Value − Initial Value)}/ Initial Value


	Holding return (%) on investment	{Annual dividend + (Face value payable on the maturity dat − Naden Lucki Initial Investment)}/Naden Lucki Initial Investment


	Holding return (%) on investment	{500 + (15,000-9,500)}/9,500

Answer	Holding return (%) on investment	63.16%


	Annualized return on her investment	(Holding return (%) on investment + 1)*1/maturity time period - 1

	Annualized return on her investment	(0.6316+1)*1/3 - 1

	Annualized return on her investment	0.177256867

Answer	Annualized return on her investment	17.73%

Jack Linton

	Jack Linton Initial Investment($25*100shares)	$2,500
	Annual dividend	$200
	Selling price of Stock($45*100shares)	$4,500
	Maturity time	4

	Holding return (%) on investment	{Income + (End Of Period Value − Initial Value)}/ Initial Value


	Holding return (%) on investment	{Annual dividend + (Face value payable on the maturity dat − Naden Lucki Initial Investment)}/Naden Lucki Initial Investment


	Holding return (%) on investment	{200 + (4,500-2,500)}/2,500

Answer	Holding return (%) on investment	88.00%


	Annualized return on her investment	(Holding return (%) on investment + 1)*1/maturity time period - 1

	Annualized return on her investment	(0.88+1)*1/4 - 1

	Annualized return on her investment	0.170952997

Answer	Annualized return on her investment	17.10%

Answer	$ amount of Jack return is	$2,800

ekkarill92 answered 3 years ago

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