Solve the problemx.

Three years ago Martha Spencer, owner of The Doll (a) House, lost control of her car while trying to find her cell phone and forced another driver (b) off the road. The court awarded $\$28,000$ to the driver of the other car and $\$8000$ to a passenger of the other car. Spencer had limits of $15 / 30$. (a) Find the amount the insurance company paid. (b) Find the amount Spencer had to pay.

$$\text{(a)}\qquad\underline{\qquad\qquad\qquad\qquad}$$

$$\text{(b)}\qquad\underline{\qquad\qquad\qquad\qquad}$$

Antique dolls representing adults from the 17th and 18th centuries have been found, but they are very rare. Individual craftsmen in England made most of these earliest dolls. The craftsmen carved the dolls of wood, painted their features, and also designed the costumes for the dolls. Some of these earliest dolls are valued at more than $\$ 40,000$.

The Barbie doll is the most popular fashion doll ever created. If all the Barbie dolls that have been sold since 1959 were placed head-to-toe, the dolls would circle the earth more than seven times. The most popular Barbie ever sold was the Totally Hair Barbie, which was introduced in 1992. With hair from the top of her head to her toes, more than 10 million of these dolls were sold, resulting in revenue of $\$ 100$ million. With annual retail sales at an estimated $\$ 3.6$ billion, Barbie is the #I brand of doll for girls.

Martha Spencer started The Doll House and sells dolls around the world through her Web site. Her business has grown over the years, but she still carefully watches costs. She knows that she must control costs to be successful. Help her figure out some of these costs.

Janet Chino, one of Spencer's employees, needs help estimating her income tax based on the following: wages- $\$ 28,410$; interest- $\$ 212$; ordinary dividends- $\$ 84$; and IRA contribution-$500. Find the following: total income, adjusted gross income, taxable income, and income tax given that Chino is single and claims only 1 exemption. Use the tax rate schedules.

Antique dolls representing adults from the 17th and 18th centuries have been found, but they are very rare. Individual craftsmen in England made most of these earliest dolls. The craftsmen carved the dolls of wood, painted their features, and also designed the costumes for the dolls. Some of these earliest dolls are valued at more than $\$ 40,000$.

The Barbie doll is the most popular fashion doll ever created. If all the Barbie dolls that have been sold since 1959 were placed head-to-toe, the dolls would circle the earth more than seven times. The most popular Barbie ever sold was the Totally Hair Barbie, which was introduced in 1992. With hair from the top of her head to her toes, more than 10 million of these dolls were sold, resulting in revenue of $\$ 100$ million. With annual retail sales at an estimated $\$ 3.6$ billion, Barbie is the #I brand of doll for girls.

Martha Spencer started The Doll House and sells dolls around the world through her Web site. Her business has grown over the years, but she still carefully watches costs. She knows that she must control costs to be successful. Help her figure out some of these costs.

Find the cost of fire insurance if the building in Question 1 is in territory 5 and has a building classification of C. The contents are valued at $\$ 145,000$.

Imagine you are a provider of portfolio insurance. You are establishing a four-year program. The portfolio you manage is currently worth $100 million, and you promise to provide a minimum return of 0%. The equity portfolio has a standard deviation of 25% per year, and T-bills pay 5% per year. Assume for simplicity that the portfolio pays no dividends (or that all dividends are reinvested). a. What fraction of the portfolio should be placed in bills? What fraction in equity? b. What should the manager do if the stock portfolio falls by 3% on the first day of trading?

Suppose there are two independent economic factors, M1 and M2. The risk-free rate is $7\%$, and all stocks have independent firm-specific components with a standard deviation of $50\%$. Portfolios A and B are both well diversified.

Write the given tax rate using the other three methods.

Find the indicated probabilities using the geometric distribution, the Poisson distribution, or the binomial distribution. Then determine the events are unusual. If convenient, use a table or technology to find the probabilities. A glass manufacturer finds that 1 in every 500 glass items produced is warped. Find the probability that the first warped glass item is the tenth item produced.

Find the amount paid by each insurance company involving multiple carriers. Assume that the coinsurance requirement is met.

Solve the application problem.

Bill Able married on his 25th birthday. He adopted the child his wife had from a previous marriage and wanted to care for the child as his own. To protect his new family against the loss of income in the event of his death, he purchased $200,000 in 10-year level premium term. Find the annual cost.

Find the finance charge for the revolving charge account. Assume that interest is calculated on the average daily balance of the account.

The formula $\text{Finance\ charge} = \text{unpaid\ Balance\ X\ monthly\ Rate}$ is sometimes used to calculate the monthly finance charge on a credit card. The formula can be written in symbols as $F = B X R$. Solve the formula for $B$, the unpaid balance. See the discussed example before.

Find the finance charge for the revolving charge account. Assume that interest is calculated on the average daily balance of the account.

Find the finance charge on the revolving charge account. Assume interest is calculated on the unpaid balance of the account.

Find the finance charge for the revolving charge account. Assume that interest is calculated on the average daily balance of the account.