PFIN 2nd Edition by Lawrence Gitman ,Michael Joehnk,Randall Billingsley

Exercise 1

Angela and Tom Saunders, both graduate students, moved into an apartment near the university. Angela wants to buy renter's insurance, but Tom thinks they don't need it because their furniture isn't worth much. Angela points out that, among other things, they have some expensive computer and stereo equipment. To help the Saunders resolve their dilemma, suggest a plan for deciding how much insurance to buy, and give them some ideas for finding a policy.