Question

You have a house that you would like to insure for $200,000. The rate per $1,000 of coverage is $8 per year. What would be the annual premium?

a) $1,600
b) $1,800
c) $2,000
d) $2,200

Answer 1

The annual premium for insuring a house for $200,000 at a rate of $8 per $1,000 of coverage would be $1,600.

Step-by-step explanation:

To calculate the annual premium, multiply the rate per $1,000 of coverage by the desired coverage amount:

$200,000 / 1000 = 200

200 x $8 = $1,600

Therefore, the annual premium would be $1,600 (option a).