Final answer:
The formula for calculating annual insurance premiums is p = 2drf. In this formula, p represents the premium, d represents the number of drivers, r represents the rate of premium per driver, and f represents the number of accidents that occur.
Step-by-step explanation:
The formula for calculating annual insurance premiums is p = 2drf. In this formula, p represents the premium, d represents the number of drivers, r represents the rate of premium per driver, and f represents the number of accidents that occur.
For example, if each of the 100 drivers pays a $1,860 premium each year, and the insurance company needs to collect $186,000 to cover the costs of the accidents, the formula becomes:
p = 2 * 100 * 1860 * f = 372,000f.