Question

Marian purchased a home valued at $465,000. She purchased homeowner insurance for 75% of the value of the home. If the annual premium on the policyhundred-dollar unit, how much did she pay to the nearest whole cent)?$2,875.50$2,695.00$2,580.75$3,050.74None of these choices are correct.

Answer 1

Ok, so

Marian purchased a home valued at $465,000. If She purchased homeowner insurance for 75% of the value of the home, she paid:

$(465,000)*(75) / (100)

$348,750.

Now, we know that the annual premium on the policy was $0.74 per hundred-dollar unit. Then, this is:

0.74/100 dollar unit.

And, if we multiply, we obtain:

$348,750 * (0.74/100) = $2,580.75

Therefore, she paid $2,580.75