Name ______

1.4 Applications

  1. A car that cost $6,375 when new is garaged in an 05 territory.
  1. What is the semiannual basic cost of a $50-deductible comprehensive insurance during the first year? ______
  1. What is the semiannual basic of a $50-deductible comprehensive insurance during

the sixth year?______

  1. How much more is the semiannual basic cost during the first year than during the sixth year? ______
  1. When computing the premium for a $200-deductible collision insurance policy the following was determined:

Age Factor: 1.80Points Factor: .30

Present Age of Car: 3 yearsNew-Car Value: $ 9,575

  1. What would the premium be if the car is garaged in an 02 territory?______
  1. What would the premium be if the car is garaged in a 25 territory? ______
  1. How much less is the premium in a 25 territory than an 02 territory?______

1.5 ApplicationsName ______

  1. A new car is priced at $8, 642. Determine its approximate value at the end of each of the following. Round each depreciation to the nearest dollar.

Ageoff the lotafter 1 yearafter 3 years

Depreciation______

Value______

  1. Judy Bailey paid $8, 954 for her car five years ago. What is the approximate trade-in value of the car at the present time? Round to the nearest dollar.

Ageoff the lotafter 1 yearafter 3 yearsafter 5 years

Depreciation______

Value______

  1. Peter Ryan lives in an 02 territory and drives a car that has a 50/100 bodily-injury coverage. He is 17 years old, has no points against his record, and uses the car for pleasure only.
  1. What will the semiannual premium be if Peter took a driver-training course and is eligible for good student credit? ______
  1. What will the semiannual be if Peter did not take a driver-training course and is not eligible for good student credit? ______
  1. How much can be saved on the semiannual premium if Peter did take the driver-training course and was eligible for good student credit? ______
  1. Sarah Channing who is 19 drives a car that is insured for $25,000 property-damage. Sarah lives in an 01 territory, has had a driver-training course, is eligible for good student credit, and uses her car for business.
  1. What will the semiannual premium be if Sarah has a record of 0 points? ______
  1. What will the semiannual premium be if Sarah has a record of 4 points? ______
  1. How much more would the semiannual premium be if Sarah has 4 points rather than 0 points? ______