You pay $5,500 per year for insurance on your building. Fire damage caused $15,000 in repairs. The insurance company paid for th

Question

2 years ago

9

You pay $5,500 per year for insurance on your building. Fire damage caused $15,000 in repairs. The insurance company paid for th

e repairs with a $1,000 deductible. Insurance premiums will go up by 15% because of the claim. What will be the annual insurance cost on the building next year

Business

1 answer:

ElenaW [278] · Answer 1 · 2023-06-19T09:34:27+03:00

Based on the amount you pay now and the increase in insurance premiums, your annual insurance costs next year would be $6,325.

<h3>What is the next insurance cost next year?</h3>

The annual cost of insurance refers to the amount that is paid in premiums in a year.

That cost is currently $5,500 but will increase by 15%.

= Current insurance cost x ( 1 + rate of increase)

Solving gives:

= 5,500 x ( 1 + 15%)

= $6,325

Find out more on insurance cost at brainly.com/question/4953989.