Welcome to the hotseat. We've prepared a guide if you'd like to read more about how it works.

Question 12.11 a and b of DHW

0 votes
asked Nov 3, 2017 in BUS 3024S - Contingencies by Kelly (970 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

0 votes
answered Nov 11, 2017 by Njabulo.Dube (2,950 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.