Question

Because of an accident Royce was involved in, his insurance company has increased his annual premium for auto insurance by 5.2%. His original policy was set up using the premiums listed below. What is his new annual premium after the increase for the accident?

Answer 1

The answer is d.  I hope this helps

Answer 2

Option D is correct.

Explanation:

The current total annual premiums become :

`22.50+144.75+275.75+100=543`

Because of an accident Royce was involved in, his insurance company has increased his annual premium for auto insurance by 5.2%.

So, the amount increases by :

`0.052*543=28.236`

So, the new amount becomes =
`543+28.236` = $571.236 ≈$571.24

Hence, option D is correct.