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Mary Rose pays her auto insurance premiums quarterly. Her annual premium last year was $1,640.00. When she increased her deductibles in the middle of the year, her quarterly premium was reduced by $45.00. What was her quarterly premium for each of the last two quarters of last year?

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Answer:

Mary Rose

Her quarterly premium for each of the last two quarters of last year is:

Quarter 3 = $365 and

Quarter 4 = $365.

Step-by-step explanation:

a) Data and Calculations:

Annual premium last year = $1,640.00

Quarterly premium will be = $410 ($1,640/4)

Reduction in quarterly premium from the middle of the year = $45.00

Quarterly premium for each of the last two quarters of last year will be =

$365 ($410 - $45).

b) Quarterly premium is equal to annual premium divided by 4 (since there are four quarters in a year). The reduction in quarterly premium only affected the last two quarters. As a result, the quarterly premium for quarters three and four will be reduced to $365 ($410 - $45).

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