At the beginning of Year 1, your auto-insurance premium for the next year is $300.

At the beginning of Year 1, your auto-insurance premium for the next year is $300. If you have 0 accidents in a year your premium for the next year drops 10 percent, if you have 1 accident in a year your premium for the next year increases10 percent, and if you have 2 accidents in a year your premium for the next year increases 30 percent. Set up a spreadsheet that will determine the premium cost for Years 1–30.

Expert Solution

Year 1

Premium amount = 300$

Year 2

If no accidents took place premium amount = 300(1-10%) = 270

If 1 accident occurs premium amount = 300(1+10%) = 330

If 2 accident occurs premium amount = 300(1+30%) = 390

Year 2

No accident occurs = 270(1-10%) = 243

If 1 accident = (330)(1+10%) = 363

If 2 accident = 390(1+30%) = 503

Rahul Sunny answered 2 years ago

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