Question

Paul paid $3,150.42 on insurance premiums in 2011. His insurance premiums rose to $4,960.08 in 2012. What was the percentage increase in his insurancepremiums from 2011 to 2012 (to the nearest whole percent)?45% increase39% increase61% increase55% increaseNone of these choices are correct.

Answer 1

To determine the percentage increase, we compute the difference in the insurance premium in 2011 and 2012. We have

`\$4960.08-\$3150.42=\$1809.66`

We then divide this value by the initial insurance premium and multiply it by 100%. We have

`(\$1809.66)/(\$3150.42)*100\%=57\%`

The percentage increase in his insurance is 57%.