Question

A property insurance policy is issued at a total cost of $2,540 for 6 months. If the insurance company offers a one-time $50 rebate, what is the cost per month?

Answer 1

Answer:

$431.67

Step-by-step explanation:

Let

The one time $50 rebate be for the first month

Cost of insurance per month = x

First month cost of insurance = x-50

Total cost of insurance = $2,540

Total cost of insurance = 1st + 2nd + 3rd + 4th + 5th + 6th

2,540 = x-50 + x + x + x + x + x

2540 + 50 = 6x

2590 = 6x

Divide both sides by 6

x= 2,590 / 6

= 431.67

x= $431,67

The cost of the insurance per month = $431.67

Check:

$431.67 * 6 months

=$2,590.02

Minus one time rebate of $50

= $2,590.02 - $50

= $2,540.02

Approximately

$2,540