Answer:
The insurance company charges an annual premium of $425.65 .
Option (d) is correct .
Explanation:
As given
Ralph wants to purchase a renters insurance policy for his new apartment.
His insurance company charges an annual premium of 16.53% of the approximate value of the items he owns and is keeping in his apartment.
Total amount of the items he owns and is keeping in his apartment = TV cost + VCR cost + DVD Player cost + Stereo cost + Sofa cost + Entertainment centre cost + Microwave cost + Coffee Maker cost + Computer cost + Bicycle cost + Coin Collection cost + Pictures/Posters cost
Putting all the values in the above
Total amount of the items he owns and is keeping in his apartment = $150 + $60 +$100 + $ 80 + $200 + $100 + $40 + $20 + $850 + $ 200 + $ 600 + $ 175
Total amount of the items he owns and is keeping in his apartment = $ 2575
16.53 % is written in the decimal form .
= 0.1653
Insurance company charges an annual premium = 0.1653 × Total amount of the items he owns and is keeping in his apartment .
= 0.1653 × 2575
= $ 425.65 (Approx)
Therefore the insurance company charges an annual premium of $425.65 .
Option (d) is correct .