Question

Because of an accident Royce was involved in, his insurance company has increased his annual premium for auto insurance by 5.2%. His original policy was set up using the premiums listed below. What is his new annual premium after the increase in the accident?

a. $514.76
b. $543.00
c. $548.20
d. $571.24

Answer 1

D

Step-by-step explanation:

Answer 2

D) $571.24

Step-by-step explanation:

Royce' premiums for the previous year were:

• bodily injury $22.50
• property damage $144.75
• collision $275.75
• comprehensive $100

The total premium of the policy was $543

Since the premiums will increase by 5.2%, the new total premium will be = $543 x 1.052 = $571.24