Jim has a 5-year-old car in reasonably good condition. He wants to take out a $30,000 term (that is, accident benefit) car insurance policy until the car is 10 years old. Assume that the probability of a car having an accident in the year in which it is x years old is as follows: Jim is applying to a car insurance company for his car insurance policy. If the car insurance company wants to make a profit of $600 above the expected total losses, how much should it charge for the policy? Round your answer to the nearest dollar.
$$\begin{array} { l c c c c c }
x = \text { age } & 5 & 6 & 7 & 8 & 9 \
P \text { (accident) } & 0.01182 & 0.01282 & 0.01386 & 0.01513 & 0.01602
\end{array}$$
A)$2688
B)$2690
C)$2692
D)$2685
E)$2683

Question

Jim has a 5-year-old car in reasonably good condition. He wants to take out a $30,000 term (that is, accident benefit) car insurance policy until the car is 10 years old. Assume that the probability of a car having an accident in the year in which it is x years old is as follows: Jim is applying to a car insurance company for his car insurance policy. If the car insurance company wants to make a profit of $600 above the expected total losses, how much should it charge for the policy? Round your answer to the nearest dollar.
$$\begin{array} { l c c c c c } 
x = \text { age } & 5 & 6 & 7 & 8 & 9 \
P \text { (accident) } & 0.01182 & 0.01282 & 0.01386 & 0.01513 & 0.01602
\end{array}$$
A)$2688
B)$2690
C)$2692
D)$2685
E)$2683

Quizplus · Accepted Answer

The Answer of Jim has a 5-year-old car in reasonably good condition. He wants to take out a $30,000 term (that is, accident benefit) car insurance policy until the car is 10 years old. Assume that the probability of a car having an accident in the year in which it is x years old is as follows: Jim is applying to a car insurance company for his car insurance policy. If the car insurance company wants to make a profit of $600 above the expected total losses, how much should it charge for the policy? Round your answer to the nearest dollar.
$$\begin{array} { l c c c c c } 
x = \text { age } & 5 & 6 & 7 & 8 & 9 \
P \text { (accident) } & 0.01182 & 0.01282 & 0.01386 & 0.01513 & 0.01602
\end{array}$$
A)$2688
B)$2690
C)$2692
D)$2685
E)$2683

Jim Has a 5-Year-Old Car in Reasonably Good Condition A)$2688 B)$2690 C)$2692 D)$2685 E)$2683

Jim Has a 5-Year-Old Car in Reasonably Good Condition A)$2688
B)$2690
C)$2692
D)$2685
E)$2683