Question

Marge makes four payments each year of $175 for her auto insurance. Howmuch must she budget weekly to cover this fixed expense?a. $13.46b. $.84c. $58.33d. $ 700

Answer 1

Since she makes four payments each year, the total amount she pays in a year is

`\$175*4=\$700`

Now there are 52 weeks in a year, divide the total amount of what she pays in a year by the number of weeks in a year.

`\$700/52=\$13.46`

Therefore, she must budget weekly $13.46 to cover for this fixed expense.