Question

If you are quoted a rate of $0.562 per hundred dollars of coverage on your car wash business and you need $350,000 of coverage, what is the cost?

Answer 1

Divide the total amount of coverage needed by 100 to find the number of hundreds needed:

350,000 / 100 = 3,500 hundreds.

Multiply the number of hundreds by the cost per hundred :

3,500 x 0.562 = $1,967 total cost.