Water damage from major flood in midwestern city resulted

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Reference no: EM131346280

Water damage from a major flood in a Midwestern city resulted in damages estimated at $100 million. As a result of the claimant payouts, insurance companies raised homeowners' insurance rates by an average of $60 per year for each of the 150,000 households in the affected city. If a 20-year study period is considered, what was the rate of return on the $100 million paid by the insurance companies? (draw the cash flow diagram)

Please make sure that the cash flow is correct .

Reference no: EM131346280

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