Question

Ellen had been renting for 18 months when there was a flood. The total cost to replace her damaged belongings was $1,580.00. What percent would Ellenhave saved if she had a renters' insurance policy at a monthly cost of $17.007 Round to the nearest tenth.

Answer 1

Hello there. To solve this question, we have to remember some properties about percentages.

Ellen had been renting for 18 months and after a flood, the total cost to replace her belongings was $1580.00.

If she had a renter's insurance policy at a monthly cost of $17.007, we want to determine how much money would she save in percentage.

For this, notice that we can determine how much money she would spend with the renter's insurance policy, that has a monthly cost, by multiplying it by the number of months she had been renting:

`\$17.007\cdot18=\$306.126`

Now, we subtract this value from the total cost to replace her damage, because this is the amount she would have saved if she had the renter's insurance policy:

`\$1580-\$306.126=\$1273.874`

Finally, we take the ratio between this value and the total cost to determine which percentage she would have saved:

`(\$1273.874)/(\$1580)\approx0.80625...`

Multiplying it by 100%, we have

`0.80625...\cdot100\%\approx80.625\%`

Rounding it to the nearest tenth, we get

`\approx80.6\%`

This is the percentage she would have saved if she had a renter's insurance policy.