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Question
The owner of a house worth $180,000 purchases an insurance policy at the beginning of the year for a price of $1,000. The deductible on the policy is $5,000. If after 6 months the homeowner experiences a casualty loss valued at $45,000, what is the homeowner's net gain/loss? Assume an opportunity cost of capital of 4.0% annually.A) $0
B) $1,000
C) $5,000
D) $6,020
Answer
This answer is hidden. It contains 1 characters.
Related questions
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