Question

Jerome uses the formula, P = DB, to find his approximate six-month premium when his driver risk factor, D, is 1.02 and the basic six-month premium is $500.

What will his monthly premium be?
A. $85.00
B. $270.60
C. $300.50
D. $332.00

Answer 1

A) $85.00

Explanation:

To find Jerome's monthly premium, we need to divide his six-month premium by 6:

P = DB/6

P = (1.02)(500)/6

P = 85

Therefore, Jerome's monthly premium will be $85. Answer choice A is correct.