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Question 12.11 a and b of DHW

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asked Nov 3 in BUS 3024S - Contingencies by Kelly (390 points)

The answers are: 1832.79 and 779.26. <-- How do I get to those? Do you need to construct image an emerging costs table to calculate these values?

1 Answer

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answered Nov 11 by Njabulo.Dube (1,850 points)

For part a, you do not need to construct an emerging cost table. You can calculate the premium by setting up the equation of value and solving for the premium.

For part b, an emerging cost table (preferably using spreadsheet software such as Excel) will be the easiest method in order to work out the NPV for the policy.

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