b. 270.60
Explanation:
Given P = DB, where D = 1.02 and B = $500, we can substitute the values into the formula to find the premium:
P = (1.02)($500)
P = $510
Since the premium is for a six-month period, to find the monthly premium, we divide the total premium by 6:
$510 / 6 = $85
Therefore, Jerome's monthly premium will be $85.
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
b. 270.60
c 300.50
d. 332
1 answer