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Kay [80]
3 years ago
13

Darrell Frazier owns a home that has a replacement value of $87,500. He purchased a homeowner’s policy for 80 percent of the hou

se’s replacement value. The home is of brick construction and is rated in fire protection class 3. Using the table below, what is his annual insurance premium?
Mathematics
1 answer:
levacccp [35]3 years ago
4 0

Answer:

<u>According to the table, the type of construction and the fire protection class, Darrell will pay US$ 213 for the annual insurance premium. </u>

Step-by-step explanation:

1. Let's check and use the information given to solve the question:  

Replacement value of Darrell's home = US$ 87,500  

Value of the homeowner's policy = 80% of Darrell's house  

Type of Darrell's home construction = Brick  

Fire protection class = 3  

2. Let's find the exact amount of the insurance coverage:  

Amount of insurance coverage = 80% of Darrell's house  

Amount of insurance coverage = 80% * 87,500  

Amount of insurance coverage = 0.8 * 87,500  

Amount of insurance coverage = 70,000  

The amount of insurance coverage is US$ 70,000  

<u>According to the table, the type of construction and the fire protection class, Darrell will pay US$ 213 for the annual premium.</u>

<u>Same answer for question 13882475</u>

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