Based on historical data, assume you have estimated the average dollar amount of loss per claim for the next couple of years (see the table below). How much money should you budget today (year 2022) for claims in 2022 and 2023 associated with products sold in 2021 (first two cells in the last column of the following table)? Assume the interest rate is 6% for the next five years. The following table is supposed to help you achieve the final answers. Year int rate $ per claim t PV ($ per claim) Number of Claims PV of claims 2022 6.00% $11,900 0 2023 6.00% $12,500 1 2024 6.00% $12,900 2 OA) 95,268 and 65,578.71 OB) 103,512 and 75,269.53 OC) 107,576 and 68,278.29 D) 114,255 and 71,632.54 Show Transcribed Text ง This question is related to the above question. How much money should you budget today (year 2022) for claims in 2024 and over all the years together (2022-2024) associated with products sold in 2021 (last two cells in the last column of the table in the last question)? Assume the interest rate is 6% for the next five years. OA) 235,933.52 and 411,787.81 OB) 256,524.79 and 435,875.62 OC) 268,784 23 and 458,971.34 OD) 289,548 65 and 487,549 37
Based on historical data, assume you have estimated the average dollar amount of loss per claim for the next couple of years (see the table below). How much money should you budget today (year 2022) for claims in 2022 and 2023 associated with products sold in 2021 (first two cells in the last column of the following table)? Assume the interest rate is 6% for the next five years. The following table is supposed to help you achieve the final answers. Year int rate $ per claim t PV ($ per claim) Number of Claims PV of claims 2022 6.00% $11,900 0 2023 6.00% $12,500 1 2024 6.00% $12,900 2 OA) 95,268 and 65,578.71 OB) 103,512 and 75,269.53 OC) 107,576 and 68,278.29 D) 114,255 and 71,632.54 Show Transcribed Text ง This question is related to the above question. How much money should you budget today (year 2022) for claims in 2024 and over all the years together (2022-2024) associated with products sold in 2021 (last two cells in the last column of the table in the last question)? Assume the interest rate is 6% for the next five years. OA) 235,933.52 and 411,787.81 OB) 256,524.79 and 435,875.62 OC) 268,784 23 and 458,971.34 OD) 289,548 65 and 487,549 37
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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