Question

James Harmon pays $850.80 per year for his life insurance. If Mr. Harmon were to pay the premiums monthly, the payments would be $76.57. What percentage more is Mr. Harmon paying for the year using the monthly rate? Percentage (to the nearest tenth) = %

Answer 1

8.0%

Explanation:

We have been given that James Harmon pays $850.80 per year for his life insurance. If Mr. Harmon were to pay the premiums monthly, the payments would be $76.57.

First of all, we will find the amount paid for the year using the monthly rate by multiplying $76.57 by 12 (1 year = 12 months).

`\text{Amount paid for the year using the monthly rate}=\$76.57* 12`

`\text{Amount paid for the year using the monthly rate}=\$918.84`

Now, we will use percent change formula.

`\text{Percent change}=\frac{\text{Final value}-\text{Initial value}}{\text{Initial value}}* 100`

`\text{Percent change}=(\$918.84-\$850.80)/(\$850.80)* 100`

`\text{Percent change}=(\$68.04)/(\$850.80)* 100`

`\text{Percent change}=0.0799717912552891* 100`

`\text{Percent change}=7.99717912552891\%`

`\text{Percent change}\approx 8.0\%`

Therefore, Mr. Harmon is paying 8.0% more for the year using the monthly rate.