Question

F4 F5 F6 F8 10 5 6 7 8 9 3 Chaoth 4. David and Ray's Auto Repair is owned by David and Ray Brinkman. They want to set up group health insurance for themselves and their three employees. Each policy will cost David and Ray $3,900 annually. What is the total premium cost annually for the company? What is the monthly premium for each employee? What would a family policy cost per month if each employee paid an additional $150 monthly for the family policy? H.Salve the follwing word problems.Round to the nearest percent. chapter 10 I. The face value of a note is $12,200, the interest rate is 12%, and the time is based on 120 days (360- day year). The note has been discounted at 15% two months before the maturity of the note. How much were the discount and the proceeds? a. Discount b. Proceeds 2. Find the time on a principal of $3,600 at 9% and interest earned of $58.50, 44, Find the rate on a principal of $2,000 for 90 days with $59.75 interest earned. 3, Determine the principal when the rate is 3.8%, time is 120 days, and interest is S87.50.

Answer 1

1	Face value of note	$12,200
	Annual Interest rate	12%
	Time duration	120 days
	Maturity interest ( $ 12,200 x 12% x 120/360)	$488
	Maturity value of note ($ 12,200 + $ 488)	$12,688
	a. Discount ( $ 12,688 x 15% x 60/360)	$       317.20
	b. Proceeds ( $ 12,688 - $ 317.20 )	$12,370.80
2	Principal value	$3,600
	Annual interest rate	9%
	Annual interest amount (360 days)	$324
	Actual interest amount earned	$58.50
	Time duration ( $ 58.50/$ 324 x 360 days)	65 days
3	Principal value	$2,000
	Time duration	90 days
	Actual interest earned	59.75
	Annual interest amount ( $ 59.75/90 days x 360 days)	239
	Annual interest rate ( $ 239/$ 2000) (rounded off)	12%
4	Time duration	120 days
	Actual interest earned	$87.50
	Annual interest rate	3.80%
	Annual interest amount ($ 87.50/120 days x 360 days)	262.5
	Principal amount ( $ 262.50/3.80%)	6,907.89