Question

Ann has to make payments twice a year on her health insurance. if each payment is $2,316, how much money should she budget for health insurance each month?

A. $579
B. $386
C. $1,158
D. $193

Answer 1

B. Because if she has to make a payment of $2,316 twice a year it would be $4,632. Then you divide that by how many months there are in a year so 12. Then you get B. $386

Answer 2

Option B. She should budget $386 each month.

Explanation:

Ann has to make payments twice a year on her health insurance = $2,316

Therefore Ann makes payment annually = $2,316 × 2 = $4,632

To find out how much money should she budget for health insurance each month.

we divide annual premium by 12

= 4,632 ÷ 12 = $386

She should budget $386 each month.