. Calculations. Points as indicated. You must show your work to receive credit for your answer. It is in your best interest to show your work as partial credit may be awarded. a. Juan would like to calculate his human life value. He believes his average annual earnings over the next 15 years will be $80,000. Of this amount, 55 percent will be used for taxes and his own personal maintenance expenses. The other 45 percent will be used to support his family. Assuming a five percent interest rate and cash flows for the next 15 years, what is Juans human life value? (2 points)

b. Elena purchased a living room set for $3,000. Elenas home and the contents were destroyed by a fire. At the time of the loss, the living room set was worth $2,250 due to depreciation. Replacement furniture will cost $3,200. If the living room set was insured on an actual cash value basis, how much will Elena collect for this loss? Assume a $250 deductible applies to the loss. (2 points) c. Chin-Jen purchased a homeowners policy (Policy A) that included $150,000 of bodily injury liability per-occurrence. When his insurer denied a claim, Chin-Jen purchased a second homeowners policy (Policy B). This policy provided $100,000 of bodily injury liability per-occurrence. While both policies were in force, Chin-Jens dog bit the neighbors child on her face. The neighbors sued Chin-Jen and were awarded a $125,000 judgement. If the claim is settled on a pro-rata basis, how much will be paid under Policy A, and how much will be paid under Policy B? (2 points) d. Pacesetter Company purchased a building to store raw materials. They insured the building for $140,000 under a property insurance policy that included an 80 percent coinsurance clause and a $500 deductible. When the building was valued at $200,000, a windstorm caused $80,000 in damage to the building. Assuming wind is covered peril, how much will Pacesetter receive from their insurer to settle this claim? (2 points)