Question
T.J. bought fire insurance for his pizza shop for $200,000 at an annual rate per $100 of $.49. At the end of 10 months, T.J. canceled the policy since his pizza shop went out of business. Determine the refund to T.J.
A. $980
B. $852.60
C. $127.40
D. $186.20
I did 200,000/100 = 2,000 x 0.49= 980 x 10 months= 9,800.
9,800 isn't one of my answers however 980 is.
Can someone please help me with this?
A. $980
B. $852.60
C. $127.40
D. $186.20
I did 200,000/100 = 2,000 x 0.49= 980 x 10 months= 9,800.
9,800 isn't one of my answers however 980 is.
Can someone please help me with this?
Answers
Reiny
If the insurance premium is properly prorated without any penalties ....
annual payment = 200000/100(.49) = $980
you used 10/12 of that or 980(10/12) = 816.67
refund should be 980 - 816.67 = $163.33
none of your answer choices match that.
annual payment = 200000/100(.49) = $980
you used 10/12 of that or 980(10/12) = 816.67
refund should be 980 - 816.67 = $163.33
none of your answer choices match that.
Anonymous
Thank you for your help.
@Reiny. Are you there?
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