BUSN 380 help Making Decisions/uophelp.com BUSN 380 help Making Decisions/uophelp.com | Page 83

you actually like to have? Are there any actions you can take to reduce
your premiums? Address these questions, taking into account your
current budget and financial status.
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BUSN 380 Week 6 Problem Set 6
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Problem Set 6
1. For each of the following situations, what amount would the insurance
company pay?
a. Wind damage of $835; the insured has $500 deductible.
b. Theft of a stereo system worth $1,300; the insured has a $250
deductible.
c. Vandalism that does $425 of damage to a home; the insured has a
$500 deductible.
2. Beverly and Kyle Nelson currently insure their cars with separate
companies paying $650 and $575 a year. If they insure both cars with
the same company, they would save 10 percent on the annual premiums.
What would be the future value of the annual savings over ten years
based on an annual interest rate of 6 percent?
3. As of 2008, per capita spending on health care in the United States
was about $8,000. If this amount increased by 5 percent a year, what
would be the amount of per capita spending for health care in 10 years?