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aivan3 [116]
3 years ago
11

Greg just purchased a house for $450,000. His annual homeowners insurance premium is $0.42 per $100 of value. If his annual prem

ium is divided into equal monthly payments, what will Greg have to pay on a monthly basis to keep his home insured? a. $1,890.00 b. $157.50 c. $1,575.00 d. $131.25 Please select the best answer from the choices provided A B C D
Mathematics
1 answer:
sveta [45]3 years ago
4 0

Answer:

\$157.50

Step-by-step explanation:

The computation of the amount pay on monthly basis is shown below:

But before that we need to find out the annual amount pay which is to be find out by applying the following formula

= Purchase\ value \times \frac {insurance\ premium}{percentage}

where,

Purchase value of the house is $450,000

Insurance premium is $0.42

Percentage is $100

Now put these values to the above formula

So, the annual amount pay is

= \$450,000 \times \frac {\$0.42}{\$100}

= \$1,890

Now the monthly paying amount is

= \frac{Annual\ amount\ pay}{total\ number\ of\ months\ in\ a\ year}

= \frac{\$1,890}{12\ months}

= \$157.50

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