Insurance

The house owner is insured against natural disasters and pays 0.04% annually of the value of house 53 Eur.

Calculate the value of the house.

Calculate the probability of disaster if you know that 41% of the insurance is to pay damages.

Correct result:

value of the house:  132500
probability of disaster:  0.016 %

Solution:

v=531000.04=132500 Eur
p=0.04%41100=0.016%



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