Question

A homeowner pays $1430 in property taxes a year, $992 in homeowner's insurance annually, and makes car insurance payments of $317.31 and $301.25 every six months If this homeowner wants to spread these expenses out by putting some money each month into a savings account. How much should he put aside per month? Round your answer to the nearest cent.

Answer 1

Answer: $304.93

Step-by-step explanation: Let's start by calculating the total cost of the homeowner's car insurance for the year.

They make two payments of $317.31 and $301.25 every six months, which means they pay a total of $618.56 per six months. Multiplying this by two (to get the annual cost) gives us $1237.12.

Now we can add up all the annual expenses:

Property taxes: $1430

Homeowner's insurance: $992

Car insurance: $1237.12

Adding these together gives us a total annual cost of $3659.12.

To calculate how much the homeowner should put aside each month, we simply divide the total annual cost by 12 (the number of months in a year):

$3659.12 ÷ 12 = $304.93

Rounding this to the nearest cent, we get that the homeowner should put aside $304.93 per month.