"What is the effect of state laws forcing individuals to purchase auto liability insurance?"

Q: Why a cashless society increase more private currency

A: A cashless society is one in which transactions, purchase and sale and other commercial transactions...

Q: It is likely that your college tuition will increase an average of 8% per year for the next 4 years....

A: Given, the payment for the first year is $12,000 Growth rate is 8% Interest rate is 5% Term is 4 yea...

Q: 5. The average car depreciates at a rate of 20% the first year after purchase and 15% every year the...

A: Cashflows means movement of cash. This movement can be positive and negative. Positive movement mean...

Q: The lender charges the borrower 1.8% per quarter. Find the equivalent nominal rate of interest. Incl...

A: The nominal rate of the loan is stated in annualized terms without considering the effect of compoun...

Q: Calculate the Indirect compensation of Mr. Ali, with the following information (all in RO): Basic Sa...

A:

Q: Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an all-equi...

A: Equity beta (EB) = 0.82 Risk free rate (RF) = 4% Market risk premium (RP) = 5%

Q: Sipho and litha are brothers. The sum of their ages is 29. In 6 years' time Sipho will be the same a...

A:

Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 12% annually if th...

A: A perpetuity is an annuity that gives out payments but has no maturity period.  

Q: Brooks Clinic is considering investing in new heart-monitoring equipment. It has two options. Option...

A: Net present value in the difference between present value(PV) of cash inflows and present value(PV) ...

Q: What is the value of an investment that promises to pay $88 per year forever if the appropriate requ...

A: The cash flows that are started immediately after the investment and go on for an infinite time peri...

Q: 10. Jade paid P10,400 on May 13, 2011 for his loan of P9,000 made on a certain date. The simple inte...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: Why there is a difference between the interest rate and the APR

A: Interest rates and APR are two phrases that are sometimes used interchangeably to refer to comparabl...

Q: The effects of financial choices can be understood by performing which of these? Check two. O Micro ...

A: Financial choices involves the financial, credit, and debt management information required to make f...

Q: f interest means higher levels of loans, and therefore, higher level of investment in real capital e...

A: Introduction : In simple words, financial intermediaries refers to the individuals and the entities ...

Q: Aluminum maker Alcoa has a beta of about 1.93, whereas Hormel Foods has a beta of 0.31. If the expec...

A: The term Beta ascertains the performance of an asset or security and change in the movement of the s...

Q: WoeBeTide's chief objective is to meet its investment needs and maintain its target debt-equity rati...

A: Residual dividend theory suggest that the dividend paid by firm should be viewed as residual. The di...

Q: Discuss the economic benefits for both. Briefly explain your understanding of an IPO, the net valuat...

A: A financial market is any marketplace where securities are traded, such as the stock exchange, bond ...

Q: At 6% interest rate, find the capitalized cost of a bridge whose cost is P 300 million and life is 2...

A: iAnswer -  Capitalised Cost - A capitalized cost is recognized as part of a fixed asset as it is an ...

Q: Kameron Gibson's bank statement showed a balance of $1,016.75. Kameron's checkbook had a balance of ...

A: Bank reconciliation statement is prepared to reconcile the bank account balance with financial recor...

Q: Find a sentence of a semi-annual payment with a periodic value of 300.00 riyals, and it is paid for ...

A:  Simple Interest is calculated directly on the principal for the respective period of time. Simple I...

Q: A dam project of the Philippine Government was estimated to cost Php 340000000 during its constructi...

A: Capitalized Cost: The capitalized cost is the present value of recurring costs that occur over very ...

Q: You need a home loan of $95,000 after your down payment. How much will your monthly house payment be...

A: Loan amount (PV) = $95000 Interest rate = 6.25% Monthly interest rate (r) = 6.25%/12 = 0.52083333333...

Q: Wolseley manufacturing Co. invests in a group of risky projects, which increases the unsystematic ri...

A: We know, as per Capital Asset Pricing Model (CAPM),  Re= Rf + [ (Rm - Rf) x Beta ] where, Re= cost o...

Q: Five deposits are made at the EOYS of years 2021-2025, as shown in the CF table above. If the intere...

A: Interest Rate = 6% Time Period = 10 Years

Q: Calculate BEP for the following information. 2000 2001 2002 2003 2004 Total benefit 0 4145 6112 7782...

A: Break even point is the point at which there is no profit or no loss. At this point the total cost i...

Q: Given the following probability distribution of returns: Probability Return 0.1 -15.0% 0....

A: Probability Return 0.1 -15.00% 0.25 0.00% 0.3 8.50% 0.25 12.00% 0.1 32.00%

Q: A company concerned about the liquidity of its near-cash securities should invest in U.S. Treasury b...

A:

Q: alue of perpetuity amo

A: Given information : Perpetuity amount 18000 Nominal rate  5% Since the question have not men...

Q: A retailer ordered merchandise totaling $127,115.23 with terms  3.5% 10  net 40. What is the effect...

A: Terms 3.5%, 10 net 40 means if the payment is made within 10 days, then there would be discount allo...

Q: A 5-year annuity-due has semiannual payments with the first payment starting two years from now. The...

A: First semi annual payment = 800 Decrease in each payment = 50 Interest rate = 8% Semi annual interes...

Q: Bandy’s Barbeque recorded the following financial results:     Fiscal year 2020 Fiscal year 2019 Ca...

A: Both the raw materials used in production and the final commodities that are ready to sale are refer...

Q: What is the WACC for Arnold and Rodgers, a law firm using 65% equity with a required return of 15%, ...

A: WACC = [Cost of debt x (1 - tax rate) x Weight of debt] + (Cost of preferred stock x Weight of prefe...

Q: ndian rupee forward contracts. The Indian rupee (INR) is currently trading at INR 50 = US$1. With 90...

A: The interest rate are very important factor in determining the forward rate and both must go in hand...

Q: 39. The discount on one unit negotiable substance in one unit of time. rate of interest present wort...

A: Since multiple questions are asked , we will answer 1st question as per prescribed guidelines.     T...

Q: Assume that in 2018, a copper penny struck at the Philadelphia mint in 1796 was sold for $495,000.  ...

A: The rate of return (RoR) is a metric used to calculate the profit or loss of an investment over time...

Q: On an annual renewable lease, the quarterly lease payment on office space is $1,600 payable at the b...

A: Quaterly lease payment is $1,600 Interest rate is 11.8% Compounded quaterly Time periodd is 1 year T...

Q: Assume that the risk-free rate is 6.00% and the market risk premium is 6.75%. What is the expected ...

A: Given: Risk free rate=6% Market risk premium = 6.75%

Q: What is the total interest paid on a loan of $5,000 at APR = 10% for one year.

A: Loan amount = $5000 Interest rate = 10% Period = 1 year

Q: An individual has $39000 invested in Stock A with a beta of 0.5 and another $35000 invested in Stock...

A: A portfolio is a set of varied investments made by an investor. Its beta is computed as the weighted...

Q: What is the monthly payment on a loan of $5,000 at APR = 6% for 4 years.

A: Loan amount (LV) = $5000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period = 4 Yea...

Q: You are testing the no-arbitrage principle of the APT, and you find a well-diversified portfolio wit...

A: APT or the Arbitrage Pricing Theory is an asset's pricing model which shows the expected returns of ...

Q: EURUSD is trading at 1.0850, US 3 month interest rates are 1.25% whilst Euro 3 month rates are 2.25%...

A: Given: Interest Rate of Euro = 2.25% Interest Rate of USD = 1.25% Spot Rate = Euro/USD = 1.0850 Peri...

Q: Board HW #1 PRIOR SERVE COST = 500 EM YRS = 20 DO ENTRY NOW DO THE AMORTIZATION ENTRY EVERY YR Board...

A:

Q: How much will it cost to purchase an ordinary annuity delivering semiannual payments of $2000 for 12...

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type]) Rat...

Q: A geometric gradient that increases at ? = 6% per year for 15 years is shown in the accompanying  di...

A: It is given that:P = $500 Growth g- 6% Interest r- 12% Time n – 15 yrs

Q: Suppose a​ seven-year, $1,000 bond with a 5.98% coupon rate and semiannual coupons is trading with a...

A: Par value of bond (FV) = $1000 Coupon rate = 5.98% Semi annual coupon amount (C) = 1000*0.0598/2 = $...

Q: Assume that in 2018, a copper penny struck at the Philadelphia mint in 1796 was sold for $495,000.  ...

A: Given: Sale year = 2018 Purchase price = 1796 Copper purchased = 0.01 Sale value=$495,000

Q: The government received a loan of 7 million monetary units at 10% per year (expenditure). These fund...

A: Loan is a situation where the individual or the company or government or any other party borrows mon...

Q: How long must development last to change the decision? or the decision to change, development must l...

A: To change the decision is period required to achieve the break even point that means no profit no lo...

Q: What amount of money deposited 25 years ago at 10% interest would now provide a perpetual payment of...

A: Since multiple questions are involved , we will answer 1st question as per prescribed guidelines and...

Motor Vehicle Insurance

Motor vehicle insurance is a contract between the insurance company that provides insurance cover and the person who owns the vehicle. According to the terms and conditions of the insurance contract, the insurance company reimburses the policyholder for losses and damages. This insurance policy covers the financial risks of the motor vehicle owner. Electronic vehicles are also covered in a vehicle insurance policy, but the insurance rate is relatively higher than other motor vehicle insurance. Motor vehicle insurance is otherwise called an automotive insurance policy.