Years for one serious accident is 10 year
<u>Given:</u>
Probability of having a serious accident = 10% every year
P(serious accident) = 0.1
Number of years = n
<u>Computation:</u>
Years for one serious accident = 1 / Probability of having a serious accident
Years for one serious accident = 1 / P(serious accident)
Years for one serious accident = 1 / 0.1
Years for one serious accident = 10 year
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The last selection should be your answer
If you paid $14 for 600, you paid:
600 * 14 = $8,400.00
If you sold them for $15.30 a share, you made:
600 * 15.30 = $9,180
9,180 - 8,400 = $780
The return on the investment being $780
Very very safe investment and not worth it.