Determine what Paul will have to pay on an annual bases for his $449,000 home if his insurance company is charging him $0.41 per $100 of value in his home.

Question

a.
$153.41
b.
$220.76
c.
$1,840.90
d.
$2,649.10

Answer 1

To determine the annual insurance cost for Paul’s home, you can follow these steps:

1. Determine the value per $100: Since the insurance company charges $0.41 per $100 of value, first, calculate how many hundreds are in the value of the home.

   \[ \text{Value of the home} = 449,000 \] \[ \text{Number of hundreds} = \frac{449,000}{100} = 4,490 \]

2. Calculate the total insurance cost: Multiply the number of hundreds by the charge per hundred.

   \[ \text{Annual Insurance Cost} = 4,490 \times 0.41 \] \[ \text{Annual Insurance Cost} = 1,843.90 \]

Thus, rounding to two decimal places, the cost is $1,840.90.

Therefore, the correct answer is:

c. $1,840.90