An automotive insurance company has 25,000 policyholders. The accident rate is 0.07. The number of accidents the company will have to pay out for is (1)_____ . If the payout for each claim (after deductibles) is $8,000, the company’s total payouts will amount to $ (2)_____. If the company wants to keep a profit margin of 8%, the premium it must charge is $(3)_____. The company can set aside a maximum amount of $(4)_____ for this year’s investments.answer choices(1) A. 1250 B. 1500 C. 1750 D. 2000(2) A.10,000,000 B. 12,000,000 C.13,000,000 D. 13,000,000(3) A. 561.6 B. 583.2 C. 596.2 D. 604.8 (4) A. 40,000 B. 580,000 C. 905,000 D. 1,120,000pls help!!! ive tried this like 10 times!!!!!!!!!

An automotive insurance company has 25,000 policyholders. The accident rate is 0.07. The number of accidents the company will have to pay out for is (1)____. 25,000*.07 1750 Answer: C. 1750   If the payout for each claim (after deductibles) is $8,000, the company’s total payouts will amount to $ (2)_____. 8000*1750 Answer: 14,000,000 Not included in the choices   If the company wants to keep a profit margin of 8%, the premium it must charge is $(3)_____. Answer: D. 604.8  Let X=premium 25,000(X)-14,000,000=net profit (25,000X-14,000,000)/25,000X=.08 X=608.7 Nearest answer is D. 604.8  The company can set aside a maximum amount of $(4)_____ for this year’s investments. Answer: D. 1,120,000
25,000*604.8-14,000,000 15120000-14,000,000 1,120,000