Question

Colin pays £766.45 a year on his car insurance.

The insurance company increases the price by 5.4%.
How much does the insurance cost now?

Answer 1

£807.84

Explanation:

Cost of Collins car insurance per year = £766.45

Percentage increase in price = 5.4%

How much does the insurance cost now?

Cost of the insurance now = £766.45 + 5.4% of £766.45

= 766.45 + 5.4/100(766.45)

= 766.45 + 0.054(766.45)

= 766.45 + 41.3883

= 807.8383

Cost of the insurance now = £807.84