Question

Midge makes six payments each year of $115 for her auto insurance. Howmuch must she budget weekly to cover this fixed expense?a. $14.38b. $19.17C. $27.13d. $13.27

Answer 1

Given

Six payments each year

$ 115

Procedure

If 6 payments are made in one year then each payment is made every two months.

We now know that a year has a total of 52 weeks.

Therefore, the monthly budget should be as follows:

`\begin{gathered} W_b=(6\cdot115)/(52) \\ W_b=13.27\text{ } \end{gathered}`

The answer would be $13.27