Question

Eileen Dressel pays $272.40 for 100/300 bodily injury limits and $100,000 property damage limits. She also pays $69.20 for $50 deductible comprehensive insurance and $194.40 for $50 deductible collision insurance. What is her annual base premium?"

And here are the answer choices:

A) $626.00
B) $663.20
C) $933.60
D) $1,052.00

Answer 1

The combination of the costs for bodily injury, property damage, comprehensive insurance, and collision insurance produces an annual base premium, which is calculated by summing these individual costs. However, the result from the calculation does not match any of the provided answer choices, suggesting a discrepancy in the question or the available options.

Step-by-step explanation:

The student has asked about calculating the annual base premium for Eileen Dressel's automobile insurance coverage. To determine her annual base premium, we must add the cost of her bodily injury limits, property damage limits, comprehensive insurance, and collision insurance.

Eileen Dressel's payments are as follows:

• Bodily injury limits: $272.40
• Property damage limits: Included in the first cost, as this is typically how insurance is presented
• Comprehensive insurance: $69.20
• Collision insurance: $194.40

By adding these amounts together, we get her annual base premium:

$272.40 + $69.20 + $194.40 = $535.00

However, the result ($535.00) is not presented in the answer choices provided, indicating there may be an error in the question or the choices given. The closest answer choice, but still incorrect, is option A) $626.00.