Question

Brian pays £475.29 a year on his car insurance. The insurance company reduces the price by 2.1%. How much does the insurance cost now? Give your answer rounded to 2 DP.

Answer 1

`\£465.31`

Explanation:

we know that

The insurance company reduces the price by 2.1%

Remember that

The actual cost of £475.29 a year represent the 100%

so

`100\%-2.1\%=97.9\%=97.9/100=0.979`

To find out the new insurance cost, multiply the original cost by the factor 0.979

`\£475.29(0.979)=\£465.31`