Answer:
$0.28 per 100 of value (B)
Step-by-step explanation:
Stephanie has a homeowner insurance policy of $355,000
Annual premium = $0.42 per 100
There is a deductible of $500
Stephanie has an annual out of pocket expense of
[($355,000/100) x $0.42] + $500 = $1,991
From the question, Stephanie now wants a new deductible amount of 1000.
Let X be the new annual premium
[(355,000X) / 100] + 1000 = 1991
3550X + 1000 = 1991
3550X = 1991 -1000
3550X = 991
X = 991/3550
X = 0.2791
X = 0.28 ( approximately)
The new annual premium is $0.28 per 100 of value
