an automotive insurance company has 30,000 policyholders, and the accident rate is 0.06.
if the company needs to make a profit of $1,740,000 this year and the payout for each claim (after deductibles) is $8,200, the minimum premium it must charge is $.
look at the picture for the rest

The minimum premium charge = $550

The minimum premium increased by $18.4

Step-by-step explanation:

Policyholders = 30,000

Accident rate = 0.06

Number of accidents = 30,000*0.06 = 1800

If the company needs to make a profit of $1,740,000 this year and the payout for each claim (after deductibles) is $8,200

Total payout = pay out per each claim * number of claims

Total payout = 8200 * 1800 = $ 14,760,000

Now total minimum premium = total payout + profit

= $ 14,760,000+ $1,740,000

= $ 16,500,000.

Minimum premium charge = total minimum premium / number of policyholders

= $ 16,500,000/30,000

= $550

Thus the minimum premium charge = $550

B) The accident rate will increase by 5% = 1.05

multiply the previous accident rate with this rate

0.06*1.05 = 0.063

Accident rate = 0.063

Number of policy holders will increase 12% = 1.12

30,000*1.12 = 33600

Number of accidents = 33600*0.063 = 2116.8

Total payout = payout per each claim * number of claims

8200 *2116.8 = $ 17357760

Total minimum premium = total payout + profit

= $ 17357760 + $ 1,740,000 = $19,097,760

Minimum premium charge = total minimum premium / number of policyholders

Minimum premium charge = $ 19,097,760 / 33600=  

568.4 - 550

= 18.4

The minimum premium increased by $18.4 ...

i can

step-by-step explanation:

stew reads at the fastest rate of 265 words per minute.

step-by-step explanation:

it's a given that felicia reads at 260 word per minute and on connie's graph we can see that she reads 200 words per minute. since stew's table tells us that he read 795 in 3 minutes, we can divide 795 by 3 to find out how many words he reads per minute.

795/3 = 265

stew reads 265 words per minute - he reads at the fastest rate since felecia reads at 260 words per minute and connie reads at 200 words per minute.

stew (265) > felecia (260) > connie (200)