# MATH Intermediate questions

in 2 hours 10 question!!!

1- Solve the problem.

The Corner Cafe has a replacement cost of \$262,000 and is insured for \$186,020 with an 80% coinsurance clause. The building has a fire loss of \$24,300. How much will the insurance company pay?

Select one:

a. \$24,300

b. \$25,880

c. \$21,566

d. \$17,253

2- Find the amount paid by each insurance company. Assume that any coinsurance requirement is met.

Insurance loss: \$15,000

Company A coverage: \$90,000

Company B coverage: \$30,000

Select one:

a. A pays: \$11,250

B pays: \$3750

b. A pays: \$10,500

B pays: \$4500

c. A pays: \$15,000

B pays: \$0

d. A pays: \$13,500

B pays: \$1500

3- Solve the problem.

A driver injures a bicycle rider. The driver has bodily injury limits of 15/30. In court, the injured rider is awarded damages of \$19,000 Find the amount that the insurance company must pay and the amount that the insured must pay.

Select one:

a. \$30,000, \$0

b. \$19,000, \$0

c. \$15,000, \$4,000

d. \$0, \$15,000

4- Find the book value after the given number of years, using the straight-line method. Round your answer to the nearest dollar.

Find the book value at the end of the first year.

Cost: \$4500

Estimated life: 5 years

Estimated scrap value: \$700

Select one:

a. \$3740

b. \$2980

c. \$3600

d. \$760

7- Solve the problem. Round to the nearest dollar.

Rainbow Ice Cream bought a frozen custard maker that cost \$6500. The expected life is 6000 hours of production with a salvage value of \$650. Find the book value at the end of the third year. Use the units-of-production method of depreciation given the following production schedule.

Year 1 1530 hours

Year 2 1650 hours

Year 3 1290 hours

Select one:

a. \$2119

b. \$4381

c. \$1469

d. \$1657

8- Solve the problem. Round to the nearest dollar.

Central Street bought a rolling machine that cost \$76,000. The expected life is 700,000 hours of production with a salvage value of \$7600. Find the book value at the end of the third year. Use the units-of-production method of depreciation given the following production schedule.

Year 1 175,000 hours

Year 2 171,000 hours

Year 3 164,000 hours

Select one:

a. \$51,000

b. \$25,000

c. \$20,629

d. \$17,400

9- Find the annual straight-line rate of depreciation for the estimated life.

50 years

Select one:

a. 0.2%

b. 1.0%

c. 2.0%

d. 50%

10- Find the amount paid by each of the multiple carriers.

The Hamilton Race Track had a fire loss of \$319,000. They had insurance as follows: company A \$250,000,  company B, \$200,000 ; and company C, \$50,000. Find the amount paid by each carrier. Assume the coinsurance requirement is met.

Select one:

a. A pays: \$127,600

B pays: \$127,600

C pays: \$63,800

b. A pays: \$319,000

B pays: \$0

C pays: \$0

c. A pays: \$159,500

B pays: \$106,333

C pays: \$53,167

d. A pays: \$159,500

B pays: \$127,600

C pays: \$31,900