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Question 1
Jay Miller insured his pizza shop for $200,000 for fire insurance at an annual rate per $100 of $0.49. At the end of 10 months, Jay canceled the policy since his pizza shop went out of business. By using the table in the handbook, the refund to Jay is __________.
$980
$852.60
$127.40
$186.20
Question 2
Al Roy bought five bonds of Jort Co. 11 3/4 at 93.25 and four bonds of Inst. System 12×08 for 81.125. If the commission on the bonds is $2.50 per bond, the total cost of all the purchases is __________.
$4,662.50
$3,425.00
$7,930.00
$7,907.50
Question 3
Al Smith, who lives in Territory five, carries 10/20/5 compulsory liability insurance along with optional collision that has a $300 deductible. Al, who was at fault in an accident, caused $4,000 damage to the other auto, as well as $900 damage to his own. Also, the courts awarded $15,000 and $7,000 respectively to the two passengers in the other car for personal injuries. Al is responsible to pay a total of:
$5,000
$5,600
$2,000
$5,300
Question 4
Bill Jones buys a fishing rod that sells for $70 subject to a 6% sales tax and an excise tax of 10%. The total amount Bill paid for the rod is __________.
$77.00
$74.20
$81.20
$75.00
Question 5
Randy Smith bought 180 shares of a mutual fund with a NAV of $14.85. This fund has a load charge of 6%. What is the offer price?
$17.54
$15.47
$15.74
$17.45
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