FIN exam 2

Wanda Sotheby purchased 120 shares of Home Depot stock at $148 a share. One year later, she sold the stock for $140 a share. She paid her broker a commision of $34 when she purchased the stock and a commision of $39 when she sold it. During the 12 months she owned the stock, she received $427 in dividends. Calculate Wanda's total return on this investment.

(606)

Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company's health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a) The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $42.32. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of covered charges. The annual deductible is $500. b) The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $10. Prescription copayments are $5. The HMO pays 100 percent after Ronald's copayment. There is no annual deductible. c) The POS requires that the employee pay $24.44 per month to supplement the cost of the program with the company's payment. If Ron uses health care providers within the plan, he pays the copayments as described above for the HMO with no annual deductible. He can also choose to use a health care provider out of the network and pay 20 percent of all charges after he pays a $500 deductible. The POS will pay for 80 percent of those covered visits. Ronald decided to review his medical bills from the previous year to see what costs he had incurred and to help him evaluate his choices. He visited his general physician four times during the year at a cost of $125 for each visit. He also spent $65 and $89 on two prescriptions during the year. What annual medical costs will Ronald pay using the sample medical expenses provided if he enrolls in the Blue Cross/Blue Shield plan?

1,038.64

Two years ago, you purchased a $1,000 par value corporate bond with a coupon interest rate of 5 percent. Today, comparable bonds are paying 4.30 percent. What is the approximate dollar price for which you could sell your bond?

1,162.79

What amount would a person with actual cash value coverage receive for two-year-old furniture destroyed by a fire? The furniture would cost $2,000 to replace today and had an estimated life of five years.

1,200

As Bart Brownlee approached retirement, he decided the time had come to invest some of his nest egg in a conservative fund. He chose the Franklin Utilities Fund. If he invests $30,000 and the fund charges a load of 4.25 percent when shares are purchased, what is the amount of commission (load) Bart must pay?

1,275

Three years ago, James Matheson bought 200 shares of a mutual fund for $23 a share. During the three-year period, he received total income dividends of $0.92 per share. He also received total capital gain distributions of $0.80 per share during the three-year period. At the end of three years, he sold his shares for $29 a share. What was his total return for this investment?

1,544

A health insurance policy pays 65 percent of physical therapy cost after a deductible of $200. In contrast, an HMO charges $15 per visit for physical therapy. How much would a person save with the HMO if he or she had 10 physical therapy sessions costing $50 each?

155

When Jill Thompson received a large settlement from an automobile accident, she chose to invest $120,000 in the Vanguard 500 Index Fund. This fund has an expense ratio of 0.14 percent. What is the amount of the fees that Jill will pay this year?

168

Jamie and Peter Dawson own 220 shares of Duke Energy common stock. Duke Energy's quarterly dividend is $0.86 per share. What is the amount of the dividend check the Dawson couple will receive for this quarter?

189.20

Jan Throng invested $42,000 in the Invesco Charter mutual fund. The fund charges a commission (load) of 5.50 percent when shares are purchased. Calculate the amount of commission (load) Jan must pay.

2,310

Sophia purchased a variable annuity contract with a purchase payment of $25,000. Surrender charges begin with 7 percent in the first year and decline by 1 percent each year. In addition, Sophia can withdraw 10 percent of her contract value each year without paying surrender charges. In the first year, Sophia needed to withdraw $6,000. Assume that the contract value had not increased or decreased because of investment performance. What was the surrender charge Sophia had to pay?

245

What would it cost an insurance company to replace a family's personal property that originally cost $25,000? The replacement costs for the items have increased 15 percent.

28,750

Your variable annuity charges administrative fees at an annual rate of 0.15 percent of account value. Your average account value during the year is $200,000. What is the administrative fee for the year?

300

Mary Canfield purchased shares in the New Dimensions Global Growth Fund. This fund doesn't charge a front-end load, but it does charge a contingent deferred sales load of 4 percent for any withdrawals during the first year. If Mary withdraws $8,000 during the first year, how much is the contingent deferred sales load?

320

Assume you are in the 28 percent tax bracket and purchase a municipal bond with a yield of 3.10 percent. Use the formula presented in chapter 11 of your textbook to calculate the taxable equivalent yield for this investment.

4.30%

The value of Mike Jackson's shares in the New Frontiers Technology Fund is $51,400. The management fee for this particular fund is 0.80 percent of the total asset value. Calculate the management fee Mike must pay this year.

411.20

Betty and James Holloway invested $71,000 in the Financial Vision Social Responsibility Fund. The management fee for this fund is 0.60 percent of the total asset value. Calculate the management fee the Holloways must pay.

426

The Tucker family has health insurance coverage that pays 80 percent of out-of-hospital expenses after a deductible of $500 per person. If one family member has doctor and prescription medication expenses of $1,100, what amount would the insurance company pay?

480

Georgia, a widow, has take-home pay of $600 a week. Her disability insurance coverage replaces 70 percent of her earnings after a four-week waiting period. What amount would she receive in disability benefits if an illness kept Georgia from work for 16 weeks?

5,040

Assume you are in the 35 percent tax bracket and purchase a municipal bond with a yield of 3.60 percent. Use the formula presented in chapter 11 of your textbook to calculate the taxable equivalent yield for this investment.

5.54%

Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company's health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a) The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $42.32. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of covered charges. The annual deductible is $500. b) The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $10. Prescription copayments are $5. The HMO pays 100 percent after Ronald's copayment. There is no annual deductible. c) The POS requires that the employee pay $24.44 per month to supplement the cost of the program with the company's payment. If Ron uses health care providers within the plan, he pays the copayments as described above for the HMO with no annual deductible. He can also choose to use a health care provider out of the network and pay 20 percent of all charges after he pays a $500 deductible. The POS will pay for 80 percent of those covered visits. Ronald decided to review his medical bills from the previous year to see what costs he had incurred and to help him evaluate his choices. He visited his general physician four times during the year at a cost of $125 for each visit. He also spent $65 and $89 on two prescriptions during the year. What total costs will Ronald pay if he enrolls in the HMO plan?

50

Becky Fenton has 25/50/10 automobile insurance coverage. If two other people are awarded $35,000 each for injuries in an auto accident in which Becky was judged at fault, how much of this judgment would the insurance cover?

50,000

Three years ago, you purchased a corporate bond that pays 5.8 percent. The purchase price was $1,000. What is the annual dollar amount of interest that you receive from your bond investment?

58

Shelly's variable annuity has a mortality and expense risk charge at an annual rate of 1.25 percent of account value. Her account value during the year is $50,000. What was Shelly's mortality and expense risk charge for the year?

625

Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If $4,500 worth of jewelry and $6,000 worth of silverware were stolen from a family, what amount of the claim would not be covered by insurance?

7,000

Ford Motor Company has a beta of 1.36 . If the overall stock market increases by 6 percent, based on this information, how much should investors assume that Ford will increase?

8.16%

Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company's health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a) The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $42.32. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of covered charges. The annual deductible is $500. b) The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $10. Prescription copayments are $5. The HMO pays 100 percent after Ronald's copayment. There is no annual deductible. c) The POS requires that the employee pay $24.44 per month to supplement the cost of the program with the company's payment. If Ron uses health care providers within the plan, he pays the copayments as described above for the HMO with no annual deductible. He can also choose to use a health care provider out of the network and pay 20 percent of all charges after he pays a $500 deductible. The POS will pay for 80 percent of those covered visits. Ronald decided to review his medical bills from the previous year to see what costs he had incurred and to help him evaluate his choices. He visited his general physician four times during the year at a cost of $125 for each visit. He also spent $65 and $89 on two prescriptions during the year. Assume Ron visited a physician outside of the network plan but had his prescriptions filled at a network-approved pharmacy. If Ronald selects the POS plan, what would his annual medical costs be?

803.28

Five years ago, you purchased a $1,000 par value corporate bond with a coupon interest rate of 3.5 percent. Today comparable bonds are paying 4 percent. What is the approximate dollar price for which you could sell your bond?

875

The Anderson Balanced mutual fund charges a sales load of 4.50%. If you invest $20,000, how much of your investment will actually be used to purchase shares in the fund? A.)$19,100 B.)$20,000 C.)$10,000 D.)$20,900 E.)$19,955

A.)$19,100

Assume that you purchase a $1,000 bond issued by GE that pays 5% interest each year. What is the annual interest amount? A.)$50.00 B.)$1,000 C.)$40.00 D.)$25.00 E.)$4.00

A.)$50.00

Francesca withdrew $7,000 from B shares that she owned in the Already Been Counted mutual fund within one year of her purchase. If she must pay a 5% contingent deferred sales fee, what amount will she actually receive? A.)$6,650 B.)$7,000 C.)$350 D.)$7,500 E.)$7,350

A.)$6,650

The Johnson family has health insurance coverage that pays 80% of expenses after a $500 deductible per person. Mr. Johnson has doctor and prescription medication expenses of $2,000. What is the total amount that he will have to pay? A.)$800 B.)$300 C.)$1500 D.)$500 E.)$2,000

A.)$800

The average upfront sales charge for the purchase of a no-load mutual fund is A.)0%. B.)8.5%. C.)11.5-14.5%. D.)2%. E.)3-5%.

A.)0%.

Which of the following is not correct about the difference between a managed mutual fund and an indexed mutual fund? A.)A managed fund will outperform an index fund only 60% of the time. B.)A important skill of a good fund manager is the ability to increase share value when the economy is good and retain that value when the economy is bad. C.)When evaluating a mutual fund, an important consideration is how long the present fund manager been managing the fund. D.)Over many years, the majority of managed mutual funds have failed to outperform the Standard & Poor's 500 stock index. E.)Managed funds generally have higher expense ratios than indexed funds

A.)A managed fund will outperform an index fund only 60% of the time.

Nancy is studying the health insurance plan options offered by her employer. She wants a policy that will have the insurance pay a percentage of her medical expenses after she meets her deductible. She should review the A.)Coinsurance. B.)Deductible. C.)Stop-loss provision. D.)Dread disease policy. E.)Hospital indemnity policy.

A.)Coinsurance.

Which of the following households most likely has the least need for life insurance? A.)Independently wealthy retiree. B.)Adult child living with parents. C.)Retired couple with a pension. D.)Single adult living alone. E.)Household with young children.

A.)Independently wealthy retiree.

If you choose to buy insurance to cover your home or your vehicle, you are using A.)Risk shifting. B.)Risk increasing. C.)Risk reduction. D.)Risk avoidance. E.)Risk assumption.

A.)Risk shifting.

Which of the following investments typically has the largest potential growth? A.)Stocks B.)Cash equivalents C.)Certificates of deposit D.)Cash E.)Government bonds

A.)Stocks

When comparing the maturity dates for U.S. government securities, which of the following is correct? A.)Treasury bills < Treasury notes < Treasury bonds B.)Treasury bonds < Treasury bills < Treasury notes C.)Treasury bills < Treasury bonds < Treasury notes D.)Treasury bonds < Treasury notes < Treasury bills E.)Treasury notes < Treasury bills < Treasury bonds

A.)Treasury bills < Treasury notes < Treasury bonds

Andrew had a fire in his house that destroyed his big screen TV. He bought it 2 years ago and, according to the insurance company, it has a 5 year life. If it would cost $2,000 to replace it today, how much would Andrew receive from the insurance company if he has actual cash value coverage? A.)$2,000 B.)$1,200 C.)The amount he originally paid for it 2 years ago. D.)$500 E.)$1,500

B.)$1,200

Shelby purchased 100 shares of the Laker Growth fund for $10.00 per share. She received income dividends of $0.15/share and capital gain distributions of $0.30/share. She sold her shares at the end of the year for $12.00. What was her percentage of total return on this investment? A.)120% B.)24.5% C.)4.5% D.)45% E.)20%

B.)24.5%

In our guest speaker's investment presentation, he uses a cartoon video involving a butcher and a dietician to represent the difference between: A.)A stock and a mutual fund B.)A broker and a fiduciary C.)The primary and the secondary market D.)A common stock and a preferred stock E.)A bond and a mutual fund

B.)A broker and a fiduciary

The process of spreading your assets among several different types of investments to lessen risk is called A.)Asset returns. B.)Asset allocation. C.)Asset combination. D.)Asset riskiness. E.)Asset investments.

B.)Asset allocation.

If overall interest rates in the economy fall, a previously issued corporate bond with a 4% interest rate will generally A.)Remain unchanged. B.)Increase in value. C.)Become worthless. D.)Be returned to the corporation. E.)Decrease in value.

B.)Increase in value.

Stephen wanted to become one of the owners of GHI Corp. when it initially became available to the general public. He participated in the A.)Primary market. B.)Initial public offering. C.)Investment bank. D.)Securities exchange. E.)Secondary market.

B.)Initial public offering.

The type of health insurance coverage that takes up where basic health insurance coverage leaves off is A.)Dental expense. B.)Major medical expense. C.)Hospital expense. D.)Physician expense. E.)Surgical expense.

B.)Major medical expense.

The most sweeping changes in the provision and administration of health care services in recent years is called A.)Long term care insurance B.)The Affordable Care Act C.)COBRA D.)Medicare E.)Health Insurance Portability Act

B.)The Affordable Care Act

Tim was driving his friend Nick to football practice. While driving, they were hit by a distracted driver who had auto insurance coverage limits of 100/300/50. Tim and Nick both suffered some physical injuries. Based on this information, which of the following is correct? A.)Timothy's injuries would be covered to $100 and property damage would be limited to $50. B.)The policy would provide a maximum of $100,000 for one person who was injured, and no more than $300,000 for total injuries of all parties in the accident. C.)Individually, Timothy and Nick's injuries would be covered to $300,000 each. D.)Nick's injuries would be covered to $50,000. E.)The total coverage for Timothy and Nick would be $100,000, and the driver who caused the accident would be covered to $50,000.

B.)The policy would provide a maximum of $100,000 for one person who was injured, and no more than $300,000 for total injuries of all parties in the accident.

Which of the following is NOT part of the "financial checkup" that one should perform when preparing to start an investment program: A.)Start an emergency fund B.)Work to balance your budget C.)Establish a line of credit to start your investment program D.)Manage or eliminate your credit card debt E.)Pay your bills on time

C.)Establish a line of credit to start your investment program

Pam just started working at XYZ Widget Company and finally wants to get insurance coverage through her employer. She does not want to take a medical exam to get coverage, because she has some underlying health conditions and is concerned that she might not qualify for a policy. Which of the following life insurance policies is her best option? A.)Adjustable life B.)Limited life C.)Group life D.)Variable life E.)Universal life

C.)Group life

Which of the following types of stock funds invests in the same companies included in the Standard & Poor's 500 stock index? A.)Regional funds B.)Growth funds C.)Index funds D.)Equity income funds E.)International funds

C.)Index funds

The failure to take ordinary or reasonable care to prevent accidents from happening is called A.)Hazard. B.)Premium. C.)Negligence. D.)Peril. E.)Risk.

C.)Negligence.

What is the primary purpose of medical expense or health care insurance? A.)Provide for funeral expenses. B.)Pay a salary if an employee is disabled. C.)Pay actual medical costs for illness or injury. D.)Repay loans if an employee cannot work because of illness or injury. E.)Provide payments to make up for some income of a person who cannot work as a result of injury or illness.

C.)Pay actual medical costs for illness or injury.

Which of the following are major reasons that investors purchase mutual funds? A.)Diversification. B.)Loads of up to 8.5%. C.)Professional management and diversification D.)Professional management. E.)All of these options are correct.

C.)Professional management and diversification

A bond that is repaid from the income generated by the project it is designed to finance is called a(n) A.)Agency bond. B.)Savings bond. C.)Revenue bond. D.)General obligation bond. E.)Treasury bill.

C.)Revenue bond.

The most common risks are A.)Property risks. B.)Personal risks. C.)Liability risks. D.)All of these are common risks. E.)None of these are common risks.

D.)All of these are common risks.

How do mutual funds provide returns to their shareholders? A.)Capital gain distributions. B.)Income dividends. C.)Capital gains. D.)All of these. E.)None of these.

D.)All of these.

Rising health costs are due to all of the following except A.)Advancements in medical technology. B.)Costs of prescription drugs. C.)The overweight population. D.)Baby boomers using fewer health care services. E.)The growing number of uninsured.

D.)Baby boomers using fewer health care services.

The potential return on any investment should A.)Be inversely related to the risk the investor assumes. B.)Be guaranteed. C.)Not have any relationship to the risk of any investment. D.)Be directly related to the risk the investor assumes. E.)Be inversely related to the risk of the investment.

D.)Be directly related to the risk the investor assumes.

Wendy has had a life insurance policy for five years with her spouse listed as the person who receives the benefit if she dies. She was recently divorced. Which of the following provisions should she take action on? A.)Incontestability clause B.)Misstatement of age provision C.)Policy reinstatement D.)Beneficiary designation form E.)The grace period

D.)Beneficiary designation form

A recent search for insurance coverage revealed that a 25 year old female considered to be "very healthy" could buy $500,000 of insurance with a 25 year Guaranteed Level Term Policy for about $250/year for 25 years OR a Whole Life cash value policy for $3,680/year for the rest of her life. When considering buying term insurance versus whole life insurance, Dave Ramsey suggests that you: A.)Buy term insurance as soon as you graduate from college. B.)Don't need insurance after your mortgage is paid off. C.)Buy whole life insurance as soon as you graduate from college. D.)Buy term insurance and invest the difference in the premium amounts yourself. E.)Rely on the Group life insurance provided through your Employer.

D.)Buy term insurance and invest the difference in the premium amounts yourself.

Nancy is studying the health insurance plan options offered by her employer. She wants a policy that will have the insurance pay a percentage of her medical expenses after she meets her deductible. She should review the A.)Hospital indemnity policy. B.)Dread disease policy. C.)Stop-loss provision. D.)Coinsurance provision. E.)Deductible.

D.)Coinsurance provision.

Jacob is concerned that his out-of-pocket health care expenses will be quite high, so he is considering adding contributions to a tax-free account that he can use with his high-deductible policy to cover catastrophic expenses. What kind of plan does he have? A.)Healthcare Reimbursement Account (HRA) B.)Flexible Spending Account (FSA) C.)Self-funded health plan D.)Healthcare Savings Account (HSA) E.)Medicare

D.)Healthcare Savings Account (HSA)

Vincent is applying for insurance for his new home. Which of the following is correct? A.)He should base the amount of insurance on the price he paid for it. B.)He should insure the building for 75% of its replacement cost. C.)He should use the actual cash value method for settling claims to receive the full cost of repairing or replacing his personal belongings. D.)His personal belongings should be covered with his home at 55-75% of his home's insured amount. E.)His insured amount should remain the same as long as he lives in his house.

D.)His personal belongings should be covered with his home at 55-75% of his home's insured amount.

When choosing an investment, you should consider risk. The four primary risk components are A.)Market, bond, stock, inflation. B.)Buying power, inflation, interest rate, market. C.)Business failure, inflation, buying power, stock. D.)Inflation, interest rate, business failure, market. E.)Stock, interest rate, market, buying power.

D.)Inflation, interest rate, business failure, market.

Mallory wants to purchase stock at the current market price. She should use a A.)Current sale order. B.)Stop-loss order. C.)Limit order. D.)Market order. E.)Stop order.

D.)Market order.

Yvonne's employer offers a health plan that has a group of doctors and hospitals that agree to provide specified medical services to members at prearranged fees. This health plan offers some flexibility since members can either visit a physician from a list or go to their own doctors. What kind of plan does her employer offer? A.)Hospital and medical service plan B.)Medicare C.)Medicaid D.)Preferred provider organization (PPO) E.)Public insurance company

D.)Preferred provider organization (PPO)

The type of health insurance coverage that cover some or all of the costs of your knee or hip replacement surgery is A.)Major medical expense. B.)Hospital expense. C.)Physician expense. D.)Surgical expense. E.)Dental expense.

D.)Surgical expense

Another name for temporary life insurance is A.)Cash value life insurance. B.)Whole life insurance. C.)Straight life insurance. D.)Term life insurance. E.)Ordinary life insurance.

D.)Term life insurance.

Mary Jane owns 1,000 shares of TUV Trucking Company. TUV pays a yearly dividend of $2.00 per share. What is the total annual dividend that Mary Jane will receive? A.)$0.25. B.)$1,000. C.)$1.00. D.)$500. E.)$2,000.

E.)$2,000.

You are considering an investment in a municipal bond that has a yield of 4%. Your tax rate is 25%. What is your taxable equivalent yield? A.)4.25% B.)3.75% C.)0.75% D.)4% E.)5.33%

E.)5.33%

Which of the following is a charge you will pay when you purchase an annuity? A.)Mortality and expense risk charge. B.)Administrative fee. C.)Fund or investment management expense. D.)Surrender charge. E.)All of these.

E.)All of these.

Brenda purchases stock and plans to hold on to it for a number of years. She could be considered to be using a A.)Direct reinvestment plan. B.)Direct investment plan. C.)Margin technique. D.)Dollar cost averaging technique. E.)Buy-and-hold technique.

E.)Buy-and-hold technique.

Timothy has $100 automatically invested in a stock each month. This way, he doesn't buy high and sell low. He is using a A.)Margin technique. B.)Direct investment plan. C.)Buy-and-hold technique. D.)Direct reinvestment plan. E.)Dollar cost averaging technique.

E.)Dollar cost averaging technique.

Fred bought life insurance when he was 47, although he told the insurance company that he was 42. He has since died. Which of the following provisions will affect the amount of money his beneficiaries will receive? A.)The grace period B.)Incontestability clause C.)Policy reinstatement D.)Naming a beneficiary E.)Misstatement of age provision

E.)Misstatement of age provision

Which of the following is correct? A.)Once a plan is set up, it should be reviewed every 10 years. B.)The best risk management plan is one that does not change throughout one's life. C.)A solid risk management plan works well without insurance as a component. D.)The main goal of insurance should be to maximize personal, property, and liability risks. E.)One question that should be asked when developing a risk management plan is "What do I need to insure?"

E.)One question that should be asked when developing a risk management plan is "What do I need to insure?"

The "Building and Other Structures" clause of a homeowner's insurance policy covers all of the following except A.)Trees and shrubs. B.)A detached garage. C.)None of these are covered. D.)A toolshed. E.)Personal Property

E.)Personal Property

The dollar amount of your Total Return on a stock investment equals: A.)Capital gains. B.)Yearly dividends in dollars less capital gains. C.)Capital gains less yearly dividends in dollars. D.)Dividend yield. E.)Yearly dividends in dollars plus capital gains.

E.)Yearly dividends in dollars plus capital gains.

Jim Johansen noticed that a corporation he is considering investing in is about to pay a quarterly dividend. The record date is Thursday, April 20. In order for Jim to receive this quarterly dividend, what is the last date that he could purchase stock in this corporation and receive this quarter's dividend payment? Monday, April 17 Wednesday, April 19 Thursday, April 13 Friday, April 14 Tuesday, April 18

Monday, April 17

For each of the following situations, what amount would the insurance company pay? a. Wind damage of $835; the insured has a deductible of $500. b. Theft of a stereo system worth $1,150; the insured has a deductible of $250. c. Vandalism that does $425 of damage to a home; the insured has a deductible of $500.

a-335; b-900; c-0

Kurt Simmons has 50/100/15 auto insurance coverage. One evening, he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. Damage to the parked car was $5,400, and damage to the store was $12,650. a. What amount will the insurance company pay for the damages? b. What amount will Kurt have to pay?

a= 15,000; b= 3 ,050

For four years, Marty Campbell invested $4,000 each year in Harley-Davidson. The stock was selling for $74 in 2014, $62 in 2015, $51 in 2016, and $59 in 2017. a. What is Marty's total investment in Harley-Davidson? b. After four years, how many shares does Marty own? c. What is the average cost per share of Marty's investment?

a= 15,984; b=264.80; c=60.43

Jason Mathews purchased 300 shares of the Hodge & Mattox Energy Fund. Each share cost $15.15. Fifteen months later, he decided to sell his shares when the share value reached $18.10. a. What is the amount of his total initial investment? b. What was the total amount Jason received when he sold his shares in the Hodge & Mattox fund? c. How much profit did he make on his investment?

a= 4,545; b=5,430; c=885

Stephanie was injured in a car accident and was rushed to the emergency room. She received stitches for a facial wound and treatment for a broken finger. Under Stephanie's PPO plan, emergency room care at a network hospital is 80 percent covered after the member has met an annual deductible of $300. Assume that Stephanie went to a hospital within her PPO network. Her total emergency room bill was $850. a. What amount did Stephanie have to pay? b. What amount did the PPO cover?

a= 410; b=440

Assume that one year ago, you bought 120 shares of a mutual fund for $33 a share, you received a capital gain distribution of $0.60 per share during the past 12 months, and the market value of the fund is now $38 a share. a. Calculate the total return for your $3,960 investment. b. Calculate the percentage of total return for your $3,960 investment.

a=672; b=16.97%