Maria has a personal risk management program that includes homeowners insurance, health

insurance, and a retirement savings plan. Perform the following calculations with regard to

Maria's personal risk management program. Show your work.

a$.$ Maria purchased an unendorsed ISO Homeowners $3$ policy. Her Coverage A limit is

$$200,000.$ Maria's home was damaged by a fire. The replacement cost of the damage was

$$18,000.$ The actual cash value of the loss was $$12,000.$ The replacement cost of Maria's home at

the time of the fire loss was $$300,000.$ Assuming a $$1,500$ deductible applies to the loss, how much

will Maria receive from her insurer to settle this loss? $(2$ pts$)$

b$.$ Maria would like to save for retirement. She plans to save $$4,500$ per year for $20$ years. Her

annual retirement contributions will be made at the end of each year. If her retirement account

can earn $5$ percent annual interest, what will the account balance equal twenty years from today,

when Maria has made her ${20}^{th}$ annual retirement savings contribution? $(1\mathrm{.}5$ points$)$

c$.$ Maria purchased a medical expense insurance policy. The policy has a $$3,500$ deductible and

an $80-20$ coinsurance provision. Maria needed a surgical procedure and she was hospitalized for

three days after surgery. The total bill $($surgery$,$ hospital and other covered expenses$)$ was

$$45,000.$ How much of this amount must Maria pay and how much will her insurer pay? Clearly

indicate how much each party pays. $(1\mathrm{.}5$ points$)$