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An Insurance Company Evaluates Many Numerical Variables About a Person

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An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance. A person's age is an example of a(n)______ numerical variable.


Definitions:

Future Sum

The amount of money or value to be received or paid at a specified date in the future.

Interest Rate

The fee, represented as a fraction of the initial sum, that a creditor levies on a debtor for asset utilization.

Interest Rates

A borrower pays this rate, calculated as a percentage of the principle, to a lender in exchange for the use of assets.

Investments

Assets or commodities acquired with the intention of generating income or appreciating in value over time.

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