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In: Finance
Car insurance contracts are usually semiannual. The insurance company usually gives you a choice: pay the...
Car insurance contracts are usually semiannual. The insurance company usually gives you a choice: pay the whole semiannual amount up front, or pay 6 equal monthly installments at the beginning of each of the next 6 months. Your insurance quote is for an up front amount is $542, or 6 monthly installments of $132 at the start of each month.
If the annual rate of return you'd be earning on this money is 2.5% APR, how much better off will you be at the end of 6 months if you pay up front? (Note this can be a negative number if you'll actually be worse off.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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Motors Repair Company contracts to sell a car to Nikki for
$3,500. Nikki gives Motors Repair a worthless check for the price.
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What does it mean to have only 25/50/25 liability coverage for
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pay)?
a. If you hit someone (you are at fault)?
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An insurance company is trying to sell you an investment policy that will pay you and...
An insurance company is trying to sell you an investment policy
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5. You have insurance coverage for drugs. The insurance company will pay 50% of the price...
5. You have insurance coverage for drugs. The insurance company
will pay 50% of the price charged by the pharmacy. You went to the
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A car insurance company has determined that the mean annual car insurance cost for a family...
A car insurance company has determined that the mean annual car
insurance cost for a family in the town of Watlington is $1716. A
researcher wants to perform a hypothesis test to determine whether
the mean insurance cost for a family in the town of Putford is
higher than this. The mean insurance cost for a random sample of 32
families in Putford was $1761. At the 10% significance level, do
the data provide sufficient evidence to conclude that the...
A car insurance company has determined that the mean annual car insurance cost for a family...
A car insurance company has determined that the mean annual car
insurance cost for a family in the town of Watlington is $1716. A
researcher wants to perform a hypothesis test to determine whether
the mean insurance cost for a family in the town of Putford is
higher than this. The mean insurance cost for a random sample of 32
families in Putford was $1761. At the 10% significance level, do
the data provide sufficient evidence to conclude that the...
An insurance company quotes you a policy that requires you to pay $800.00 at the beginning...
An insurance company quotes you a policy that requires you to
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(express as positive number)
Pat contracts with an Ajax Insurance Company agent for a $50,000 ordinary life insurance policy.
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interest?
Round your answer to...
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