Answer:
Grey have to pay $157.5 on monthly basis to keep his home insured.
Step-by-step explanation:
Grey purchased a house = $450,000
Annual Insurance premium = $0.42 per $100 of value.
We need to calculate monthly premium to pay such that home insured.
Now we calculate number of 100 in $450,000
Number of 100 = 4500
The premium value of 1 hundred = $0.42
Total value of 4500 hundred = 0.42 x 4500 = $1,890
Grey total premium in 1 year = $1,890
Now we find monthly premium
We know in 1 year total number of month is 12
In 12 month premium = $1,890
In 1 month premium = 1890÷12 = 157.5
Monthly premium for home insured = $157.5
Thus, Grey have to pay $157.5 on monthly basis to keep his home insured.
