BUISENESS MANAGEMENT
INSURANCE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A house worth €300, 000 will cost €5 per 1000 to insure. How much will the premium be?

€500


€3000


€1500


€150

Explanation:
Detailed explanation1: In its most basic form, the formula for future value (FV) is FV= PV*(1+i)^n, where “PV” equals the present value, “i” represents the interest rate and “n” represents the number of time periods.
Detailed explanation2: Net profit is gross profit minus operating expenses and taxes. You can also think of it as total income minus all expenses.
Detailed explanation3: A related account is Insurance Expense, which appears on the income statement and shown on balance sheet as asset.
There is 1 question to complete.