Question

James Harmon pays $850.80 per year for his life insurance. If Mr. Harmon were to pay the premiums monthly, the payments would be $76.57. What percentage more is Mr. Harmon paying for the year using the monthly rate? Percentage (to the nearest tenth) = %

Answer 1

Answer:

8.0%

Step-by-step explanation:

We have been given that James Harmon pays $850.80 per year for his life insurance. If Mr. Harmon were to pay the premiums monthly, the payments would be $76.57.

First of all, we will find the amount paid for the year using the monthly rate by multiplying $76.57 by 12 (1 year = 12 months).

$\text{Amount paid for the year using the monthly rate}=\ 76.57\times 12$

$\text{Amount paid for the year using the monthly rate}=\ 918.84$

Now, we will use percent change formula.

$\text{Percent change}=\frac{\text{Final value}-\text{Initial value}}{\text{Initial value}}\times 100$

$\text{Percent change}=\frac{\ 918.84-\ 850.80}{\ 850.80}\times 100$

$\text{Percent change}=\frac{\ 68.04}{\ 850.80}\times 100$

$\text{Percent change}=0.0799717912552891\times 100$

$\text{Percent change}=7.99717912552891\%$

$\text{Percent change}\approx 8.0\%$

Therefore, Mr. Harmon is paying 8.0% more for the year using the monthly rate.