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C=0.25(L-1200)
The cost, 
C, in dollars, to the holder of a liability insurance account given a total liability of 
L dollars is given by the equation as long as 
C is positive. By how many dollars does the liability increase when the cost to the holder increases by 1 dollar?

C=0.25(L1200) C=0.25(L-1200) \newlineThe cost, C C , in dollars, to the holder of a liability insurance account given a total liability of L L dollars is given by the equation as long as C C is positive. By how many dollars does the liability increase when the cost to the holder increases by 11 dollar?

Full solution

Q. C=0.25(L1200) C=0.25(L-1200) \newlineThe cost, C C , in dollars, to the holder of a liability insurance account given a total liability of L L dollars is given by the equation as long as C C is positive. By how many dollars does the liability increase when the cost to the holder increases by 11 dollar?
  1. Isolate L in equation: We are given the equation C=0.25(L1200)C = 0.25(L - 1200), where CC is the cost to the holder and LL is the total liability in dollars. We need to find out how much LL increases when CC increases by 11 dollar.\newlineFirst, let's isolate LL in the equation to see how it changes with respect to CC.
  2. Add 12001200 to both sides: We add 12001200 to both sides of the equation to get C+1200=0.25LC + 1200 = 0.25L.
  3. Divide by 00.2525 to solve: Next, we divide both sides of the equation by 0.250.25 to solve for LL. This gives us L=C+12000.25L = \frac{C + 1200}{0.25}.
  4. Find change in LL: Now, we want to find out the change in LL when CC increases by 11 dollar. Let's call the increase in LL as ΔL\Delta L and the increase in CC as ΔC\Delta C. Since ΔC\Delta C is 11 dollar, we can write the new cost as LL00.
  5. Substitute C+ΔCC + \Delta C: Substituting C+ΔCC + \Delta C into the equation for LL, we get L+ΔL=C+ΔC+12000.25L + \Delta L = \frac{C + \Delta C + 1200}{0.25}.
  6. Solve for ΔL\Delta L: Since ΔC\Delta C is 11, we can substitute it into the equation to get L+ΔL=(C+1+1200)/0.25L + \Delta L = (C + 1 + 1200) / 0.25.
  7. Substitute LL into equation: We can now subtract the original LL from both sides to find ΔL\Delta L. This gives us ΔL=(C+1+1200)0.25L\Delta L = \frac{(C + 1 + 1200)}{0.25} - L.
  8. Simplify the equation: We know that L=(C+1200)0.25L = \frac{(C + 1200)}{0.25} from our earlier step, so we can substitute this into our equation for ΔL\Delta L. This gives us ΔL=[(C+1+1200)0.25][(C+1200)0.25].\Delta L = \left[\frac{(C + 1 + 1200)}{0.25}\right] - \left[\frac{(C + 1200)}{0.25}\right].
  9. Calculate ΔL\Delta L: Simplifying the right side of the equation, we see that the terms (C+1200)/0.25(C + 1200) / 0.25 cancel out, leaving us with ΔL=(1/0.25)\Delta L = (1 / 0.25).
  10. Final result: Calculating 1/0.251 / 0.25 gives us ΔL=4\Delta L = 4. This means that the liability increases by 44 dollars when the cost to the holder increases by 11 dollar.

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