Actuarial Notes

Exam DISC-RM Practice Question 218

Study guide: Exam DISC-RM

A garden center's net income plus continuing operating expenses is $260,000 a month from March through June and $90,000 in each other month. The underwriter judges that a total loss would take at most 4 months to restore, and that extra expense would be about $50,000. Ignoring the waiting period, what is the probable maximum loss of business income?

  • A) $636,667
  • B) $920,000
  • C) $1,040,000
  • D) $1,090,000

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