Question

Cesar’s annual homeowners insurance premium is $972. 80. If his home is valued at $253,000, roughly how much is Cesar paying for homeowners insurance? a. $0. 13 per $100 of value b. $0. 19 per $100 of value c. $0. 26 per $100 of value d. $0. 38 per $100 of value.

Answer 1

The amount paid by Cesar for homeowners insurance is $0.38 per $100 of value.

The insurance premium is the amount that is paid by the insurance holders at the fixed time interval until the complete value of the property is not covered along with the interest.

Computation:

Given,

Insurance premium =$972.80

Total Value =$253,000

$\begin{aligned}\text{Payment}&=\dfrac{\text{Insurance Premium}}{\text{Total Value}}\times\ 100\\&=\dfrac{\ 972.80}{\ 253,000}\tomes\ 100\\&=\ 0.00384\times\ 100\\&=\ 0.38\end{aligned}$

Therefore, roughly Cesar will pay $0.38 for every $100 of value, that is option d. is correct.

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