Question

You have insurance premiums of $250 due quarterly. how much will you pay annually?

a. $250
b. $500
c. $750
d. $1,000

Answer 1

quarterly means every 3 months, so $250 x 4 = $1000

Answer 2

The correct option is d.

Explanation:

It is given that you have insurance premiums of $250 due quarterly.

In each year we have 4 quarters, because each quarter has 3 months.

The total amount of insurance premiums due quarterly is $250.

The total amount of insurance premiums due annually is

`\text{Yearly due}=4* \text{Quarterly due}`

`\text{Yearly due}=4* \$250`

`\text{Yearly due}=\$1000`

Therefore we have to pay $1000 annually. Option d is correct.