3 Beverly And Kyle Nelson Currently Insure Their Cars With Separate Companies Paying 450 And 375 A Year If They Insu 1 (16.96 KiB) Viewed 18 times
3 Beverly And Kyle Nelson Currently Insure Their Cars With Separate Companies Paying 450 And 375 A Year If They Insu 2 (22.33 KiB) Viewed 18 times
3. Beverly and Kyle Nelson currently insure their cars with separate companies paying $450 and $375 a year. If they insured 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? (4 marks)
5. Assume that three years ago, you purchased a 10-year corporate bond that pays 8.0 percent. The purchase price was $1,000. Also, assume that today comparable bonds are paying 7.0 percent. a) What is the annual dollar amount of interest that you receive from your bond investment? (2 marks) b) Assuming that comparable bonds are paying 7.0 percent, what is the approximate market price for which you could sell your bond? (2 marks)
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