Basics of Insurance Meaning of Insurance Insurance provides financial protection against a loss arising out of happening of an uncertain event. A person can avail this protection by paying premium to an insurance company. A pool is created through contributions made by persons seeking to protect themselves from common risk. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this
Premium Insurance
Removal Act in 1830. President Jackson‚ demonstrated who his true colors were after he made the Chickasaw among four other groups walk in the middle of the winter into “Indian Territory”‚ also known as Oklahoma‚ “The United States promised to resume annuity payments and that the Chickasaw Nation would never become part of a new state. That promise was broken 40 years later” (Encyclopedia). With this said‚ after the Chickasaw injustice was brought up to the surface‚ they were finally
Premium United States Native Americans in the United States Cherokee
5. What initial salary would Ben need to receive to make him indifferent between attending Wilton University and staying in his current position? (Hint: Find the after tax salary needed by using the formula for the present value of a growing annuity given to you in your “Discounted Cash Flow Valuation” handout on September 19. Then convert to a pretax salary.)
Premium Discounted cash flow Time value of money Costs
one. ◆ Explain what a growth option is‚ and give an example of a project that includes one. ◆ Explain what a flexibility option is‚ and give an example of a project that includes one. ◆ Use the replacement chain and equivalent annual annuity methods to compare projects with unequal lives‚ and explain when you might use one method over the other. ◆ List the steps a firm goes through when establishing its optimal capital budget in practice. Lecture Suggestions This
Premium Net present value
1. When a firm maximizes profits it will simultaneously minimize opportunity costs. Answer: True Terms to Learn: opportunity cost 2. The usual starting point in budgeting is to forecast net income. Answer: False Terms to Learn: operating budget The usual starting point in budgeting is to forecast sales demand and revenues. 3. If the $17‚000 spent to purchase inventory could be invested and earn interest of $1‚000‚ then the opportunity cost of holding inventory
Premium Net present value Cash flow Internal rate of return
LIFE INSURANCE CORPORATION OF INDIA : COPING WITH UNCERTAINTY INTRODUCTION TO CASE The year 1996 was a significant one for the pension fund business in India. Till then‚ by virtue of Section 30 of LIC Act‚ 1956‚ only the Life Insurance Corporation (LIC) was authorized to transact life insurance business and the pension business was treated as a part of life insurance business according to the provision of the Insurance Act‚ 1938. In 1996 Government of India made a momentous decision to allow the
Premium Insurance Pension Life insurance
LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT Report on Summer Training FINANCIAL ANALYSIS OF BAJAJ ALLIANZ LIFE INSURANCE Submitted to Lovely Professional University In partial fulfillment of the Requirements for the award of Degree of Master of Business Administration Submitted by: Sharmishtha Singh University Roll No. RR1904B 25 DEPARTMENT OF MANAGEMENT
Premium Insurance Life insurance Term life insurance
Financial Accounting 1. Obligation of business that represents the claims of these against the assets of the less cash is called? A. Asset B. An expense (WA) C. Revenue D. An equity E. Liability 2. Net income results when A. Assets > liability B. Revenue = expenses C. Revenue > expenses D. Revenue < expenses E. None 3. Resources owned by a business are referred to as A. Stockholders equity B. Liability C. Assets D. Revenue (WA) E. None 4. Expenses are incurred
Premium Arithmetic mean Balance sheet Statistical hypothesis testing
(approximately) d. PV = C/(r-g) = 10‚000/(.10-.05) = $200‚000. 9. a. PV = 10‚000/(1.055) = $7‚835.26 (assuming the cost of the car does not appreciate over those five years). b. You need to set aside (12‚000 × 6-year annuity factor) = 12‚000 × 4.623 = $55‚476. c. At the end of 6 years you would have 1.086 × (60‚476 - 55‚476) = $7‚934. 10. We did not cover continuous compounding so you do not need to worry about this question. 11. Same as
Premium Net present value Present value Time value of money
MATH 1003 Calculus and Linear Algebra (Lecture 1) Albert Ku HKUST Mathematics Department Albert Ku (HKUST) MATH 1003 1 / 18 Outline 1 About MATH 1003 2 Mathematics of Finance 3 Simple Interest Albert Ku (HKUST) MATH 1003 2 / 18 About MATH 1003 About MATH 1003 Lecturer: Albert Ku (Office: Rm 3492. E-mail: maybku@ust.hk) Teaching assistant: Dy Chun Yin‚ Li Xing‚ Lau Hing Sang and Wong Kwok Pang Office hours at Learning Commons: Fri 10:00-noon Textbook:
Premium Time value of money Interest Future value