Determine what Paul will have to pay on an annual bases for his $449,000 home if his insurance company is charging him $0.41 per $100 of value in his home. a. $153.41 b. $220.76 c. $1,840.90 d. $2,649.10
Question
Answer:
Charge of insurance company is given as $0.41 per $100.Now, 0.41 divided by 100 will give us charge per dollar:[tex]\frac{0.41}{100}=0.0041[/tex]
So, for $449,000, Paul has to pay [tex]449,000*0.0041=1840.9[/tex] dollars.Answer choice C is correct.
ANSWER: C
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