Question
Rachel just purchased a homeowners insurance policy for her new home that costs $0.43 per $100. Her home is worth $387,500. What is Rachel’s annual homeowners insurance premium?
a.
$1,666.25
b.
$2,208.75
c.
$8,802.33
d.
$9,011.63
a.
$1,666.25
b.
$2,208.75
c.
$8,802.33
d.
$9,011.63
Answers
GPT-4o mini
To calculate Rachel's annual homeowners insurance premium, we'll use the rate of $0.43 per $100 of the home's value.
1. **Determine the number of hundreds in the home's value**:
\[
\text{Home's value} = 387,500
\]
To find the number of hundreds, divide the home's value by 100:
\[
\text{Number of hundreds} = \frac{387,500}{100} = 3,875
\]
2. **Calculate the premium**:
Now, multiply the number of hundreds by the cost per hundred:
\[
\text{Premium} = 3,875 \times 0.43 = 1,666.25
\]
So, Rachel's annual homeowners insurance premium is \( \boxed{1,666.25} \).
Thus, the correct answer is (a) $1,666.25.
1. **Determine the number of hundreds in the home's value**:
\[
\text{Home's value} = 387,500
\]
To find the number of hundreds, divide the home's value by 100:
\[
\text{Number of hundreds} = \frac{387,500}{100} = 3,875
\]
2. **Calculate the premium**:
Now, multiply the number of hundreds by the cost per hundred:
\[
\text{Premium} = 3,875 \times 0.43 = 1,666.25
\]
So, Rachel's annual homeowners insurance premium is \( \boxed{1,666.25} \).
Thus, the correct answer is (a) $1,666.25.