Answer:
The correct answer is: Your age, driving record, and annual mileage.
Explanation:
Auto insurances take into account several risk factors at the moment of evaluating what type of coverage insureds should purchase. Individuals' <em>age (higher premium if older), driving record (higher premium if negative), and average annual mileage (higher premium the more mileage</em>) are key factors insurance companies tend to consider to find out what is the most convenient policy for those people and based on that, the premium that will be charged every month.
Answer:
$1,061.28
Explanation:
We need to calculate the present value of the bond using the minimum effective rate of 7.1225%
First we calcualte the present value of an annuity of $80 for 10 years
PV = $558.72
Then we calculate the $1,000 in 10 years present value
PV = $502.57
Then we add both values
$502.57 + $558.72 = $1,061.28
This will be the present value AKA market price which yields the minimun rate of 7.1225%
Answer:
Spot USD/GBP rate = 1.5711
(a) 1 year USD/GBP forward rate:
= [Spot rate × (1 + Domestic currency interest rate)] ÷ (1 + foreign currency interest rate)
= [1.5711 × (1+0.19%)] ÷ (1 + 0.39%)
= 1.56797, which means the USD will be at a forward premium
b) The observed 1 year forward rate is 1.60 which differs from the ideal forward rate.
This means an arbitrage opportunity exists here.
c) I would sell GBP forward for 1 year @ 1.60.
This means that I will receive USD 1.60 for every 1 GBP I sell instead of 1.56797 that is the ideal deal.
This is how I would take advantage of the arbitrage opportunity.
Answer:
annual demand = 380 * 12 = 4,560
order cost = $8.50
annual holding cost = $0.45 * 25% = $0.1125
EOQ = √[(2 * 4,560 * $8.50) / $0.1125] = 830.10 ≈ 830 units
time between placement of orders = 830 units / 4,560 units = 0.182 years = 2.18 months
reorder point = 4,560 units * 2/12 (lead time) = 760 units
A new order should be placed when the inventory level is 760 units
