Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Calculations. Points as indicated. You must show your work to receive credit for your answer. It is in your best interest to show your

image text in transcribed

4. Calculations. Points as indicated. You must show your work to receive credit for your answer. It is in your best interest to show your work as partial credit may be awarded. a. Audra purchased a living room set for $4,000. Her home and the contents were destroyed by a tornado (a covered peril). At the time of the loss, the living room set was worth $3,500 due to depreciation. Replacement furniture will cost $4,200. If the living room set was insured on an actual cash value basis, how much will Audra collect for this loss? Assume a $250 deductible applies to the loss. (2 points) b. Eric would like to calculate his human life value. He believes his average annual earnings for the next 12 years will be $80,000. Of this amount, 45 percent will be used to support his family and 55 percent will be used to pay taxes and for his own personal maintenance expenses. Assuming an interest rate of 5 percent, what is Eric's human life value? (2 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting The Ultimate Guide To Accounting For Beginners

Authors: Greg Shields

1st Edition

1546332820, 978-1546332824

More Books

Students also viewed these Accounting questions

Question

Describe the roles of the nursing student and faculty.

Answered: 1 week ago

Question

What is the education level of your key public?

Answered: 1 week ago

Question

What are the cultural/ethnic/religious traits of your key public?

Answered: 1 week ago