Question

Calculate the premiums for the following insurance policies. (Help!!!! Active Quiz)

Marty pays $809.50 for automobile insurance, of which $64 is for comprehensive coverage. One year, Marty has two accidents. What will his premium be the next year assuming the cost for comprehensive does not change?
(Note: Subtract the $64 before you take 150 percent, then add the $64 back in to get the new total!)

Annual premium?

Answer 1

Answer: Annual premium is $1182.25.

Explanation:

Since we have given that

Amount paid for automobile insurance = $809.50

In which Amount for comprehensive coverage includes = $64

So, Amount without comprehensive coverage is given by

`\$809.50-\$64\\\\=\$745.50`

One year, Marty has two accidents.

so, amount for premium includes 150% of 745.50( Amount without comprehensive coverage) which is given by

`(150)/(100)* 745.50\\\\=\$1118.25`

Then we include the cost of comprehensive coverage as it is given that it does not change.

`1118.25+64\\\\=\$1182.25`

Hence, Annual premium is $1182.25.

Answer 2

Automobile insurance: 809.50
comprehensive coverage: 64

Based on the note:
subtract 64: 809.50 - 64 = 745.50
multiply by 150% : 745.50 x 1.5 = 1,118.25
add 64: 1,118.25 + 64 = 1,182.25

The new total is 1,182.25