Question

Mary is 25 years old, and she owns her car, which she uses to drive to work. Her collision deductible is $100, and she does not have comprehensive coverageif her car's safety rating is 20, what is her annual premium?

A. 1353


B.2706


C.820


D.1600

Answer 1

Mary's annual premium for her car insurance would be $1,860, based on the given example where each of 100 drivers pays the same amount to cover the total cost of accidents.

Step-by-step explanation:

The student's question is about calculating the annual premium Mary would have to pay for her car insurance based on a simplified automobile insurance example. Based on the example provided, where a group of 100 drivers collectively pays a total of $186,000 in premiums to cover the costs of accidents, we can calculate that each of the drivers would pay a $1,860 premium annually. This is obtained by dividing the total cost by the number of drivers (186,000 / 100 = 1,860). Therefore, it follows that Mary's annual premium would also be $1,860.

Answer 2

B is correct

Step-by-step explanation:

Hope that helps