Question

your automobile insurance semiannual premium is 750 and you have 1050 deductible per incident. In a particularly bad year, you had two collisions. The total repair costs were 2700 and 1400. What was your out of pocket expenses?

Answer 1

Answer:

  $3600

Step-by-step explanation:

In each case, the repair cost exceeded the deductible, so your out-of-pocket cost for 2 repairs is ...

  2 × $1050 = $2100

In addition, you had to pay the premium of $750 per 6-month period, or $1500 per year, so your total was ...

  $2100 +1500 = $3600 . . . out-of-pocket total