Bodily Injury Liability: Covers financial loss due to legal expenses, medical expenses, lost wages, etc. associated with injuries caused by an accident for which you were responsible.

• Expressed as 3 numbers, example: 100/300/50. (Maximum coverage in $1,000s.)
  • $100,000 maximum paid for injuries to any one person.
  • $300,000 maximum paid in total (all people in accident)
  • $50,000 maximum paid for property damage.

Joseph has 50/100/15 auto insurance coverage. One evening he lost control of his vehicle hitting a parked car and damaging a store front. Damage to the parked car was $5,400 and damage to the store was $12,650.

What amount will the insurance company pay for the damages?

What amount will Joseph have to pay?

Note: Enter answers as a whole number (no decimals)

When Carolina's house burned down, she lost household items worth $50,000. Her house was insured for $160,000 and her homeowners' policy provided coverage for personal belongings up to 55% of the insured value of the house.

How much insurance coverage does Carolina's policy provides for her personal possessions:

How much will Carolina receive as payment for all of the items destroyed in the fire:

Note: Enter answers as a whole number (no decimals)

You started a new job and received a packet that contains information on the companys health insurance options. Employees have a choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO and a PPO. You need to decide which program fits your needs.

You review your medical bills from the previous year to see what costs you incurred and to help you evaluate your choices. You visited your general physician four times during the year at a cost of $100 for each visit. You also spent $65 and $89 on two prescriptions during the year.

Answer the following questions:

The HMO is provided to employees free of charge. The copayment for doctors office visits and major medical charges is $20. Prescription copayments are $15. The HMO pays 100% after your copayment. There is no annual deductible. What is your personal annual cost? Note: Enter answers as a whole number (no decimals)

Your family has health insurance coverage that pays 80% of out-of-hospital expenses after a $500 deductible per person. If one family member has doctor and prescription medication expenses of $2,200, what amount would the insurance pay? Note: Enter answers as a whole number (no decimals)

The PPO has a monthly premium cost of $60. Doctor office visits, prescriptions, and major medical charges, you are responsible for 20% and the insurance company will cover 80% of covered charges. Annual deductible is $250.

What is the total annual medical costs:

What is your personal annual cost:

Note: Enter answer to the 2 decimals place.

According to the Bureau of Labor Statistics, the average health care cost spent annually as a percentage of income is 13.4% for adults 65 years and older (BLS, 2020 Source (Links to an external site.)).

Calculate approximately how much money an older household (age 65+) with an annual income of $45,000 will spend on health care each year?

Rachel is 30 and has a good job at a biotechnology company. She currently has $50,000 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 6%, and she plans to leave it untouched until she retires at age 65. She does not plan on making any additional contributions.

How much will Rachel's IRA be worth when she needs to start withdrawing money from it when she retires at 65? (Hint: Use the Future Value Factor for a LUMP SUM, we learned in Chapter 4)

Rachel's coworker Angeles, is 25 years old and wants to retire early. She has just opened an IRA and believes it will grow at an annual rate of 7%. She plans on contributing $5,000 a year, every year until she retires at age 55.

How much will Angeles' IRA be worth when she retires at 55? (Hint: Use the Future Value Factor for an ANNUITY, we learned in Chapter 4)

Emmanuel and Linh have accumulated over $3.5 million during their 30 years of marriage. They have four children and six grandchildren.

What is the total amount of estate removed from Emmanuel and Linh's estate in 2020 if they gift the maximum allowable amount to their children and grandchildren without incurring any gift taxes?

PLEASE ANSWER ALL