Question

Susan is paying $0.30 per $100 on her $483,000 home in homeowners insurance annually. If her annual homeowners insurance premium is divided into twelve equal monthly installments to be included on each of her monthly mortgage payments of $2128.00, what is her total monthly payment? a. $2,248.75 b. $2,409.75 c. $3,381.00 d. $3,577.00 Please select the best answer from the choices provided

Answer 1

a) $2248.75Explanation:

Answer 2

a) $2248.75

Explanation:

Susan pays $0.3 per $100

For $483000, she pays $1449 insurance annually : Calculation shown below

483000/100 x 0.3 = $1449

Monthly instalments of the insurance premium for 12 months :

annual insurance premium/ 12 months

1449/12 = $120.75

Monthly mortgage payments = $2128

Monthly total payments = monthly mortgage payments + monthly insurance premium instalment.

= 1449 + 120.75

= $2248.75

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