Question

Rachel just purchased a homeowners insurance policy for her new home that costs $0.43 per $100. Her home is worth $387,500. What is Rachel’s annual homeowners insurance premium? a. $1,666.25 b. $2,208.75 c. $8,802.33 d. $9,011.63

Answer 1

1,666.25 is the answer. found it on quizlet

Answer 2

This problem can be solved through the concept of ratio and proportion such that the ratio between $0.43 and $100 should be the same as that of her insurance premium, x, and the cost of her new home.
$0.43 / $100 = x / $387,500
The value of x from the equation generated above is,
x = $1666.25
Thus, the answer is letter A.