1. Bob has his property insured for $200,000 even though the actual cash value of this property is estimated to be $275,000. His insurance agent has advised him that his policy has a 90% coinsurance provision and that he should really increase his limits. Bob is cheap and doesn't want to pay any more in premium so ignores his agent's advice. What will his recovery be if he has the following losses? a. $50,000 b. $200,000 C. $275,000

4. Sally has a balance of $2845 on her credit card. What rate of simple interest is she being charged if she must pay $26.19 interest for the 12 days her payment is late?

The annual profit from an investment is $25,000 each year for 5 years and the cost of investment is $75,000 with a salvage value of $45,000. The discount rate (cost of capital) at this risk level is 14%. Based on the given information, the net present value of the investment = $☐ (round your response to the nearest whole number).

Karim Soltan is shopping for a new vehicle, and has noticed that many vehicle manu-facturers are offering special deals to sell off the current year’s vehicles before the new models arrive. Karim’s local Ford dealership is advertising 3.9% financing for a full 48 months (i.e., 3.9% compounded monthly) or up to $4000 cash back on selected vehicles. The vehicle that Karim wants to purchase costs $24 600 including taxes, delivery, licence, and dealer preparation. This vehicle qualifies for $1800 cash back if Karim pays cash for the vehicle. Karim has a good credit rating and knows that he could arrange a vehicle loan at his bank for the full price of any vehicle he chooses. His other option is to take the dealer financing offered at 3.9% for 48 months. Karim wants to know which option requires the lower monthly payment. He knows he can use annuity formulas to calculate the monthly payment.QUESTIONS  Suppose Karim buys the vehicle on July 1. What monthly payment must Karim make if he…