Question

Paul paid $3,150.42 on insurance premiums in 2011. His insurance premiums rose to $4,960.08 in 2012. What was the percentage increase in his insurancepremiums from 2011 to 2012 (to the nearest whole percent)?45% increase39% increase61% increase55% increaseNone of these choices are correct.

Answer 1

To determine the percentage increase, we compute the difference in the insurance premium in 2011 and 2012. We have

$\ 4960.08-\ 3150.42=\ 1809.66$

We then divide this value by the initial insurance premium and multiply it by 100%. We have

$\frac{\ 1809.66}{\ 3150.42}\times100\%=57\%$

The percentage increase in his insurance is 57%.