Question
In many cases, lenders allow homeowners to include their homeowners insurance premium with their monthly mortgage payment. Tim’s home is worth $279,500. If his homeowners insurance premium is $0.33 per $100, how much is added to his monthly mortgage payment for insurance?
a.
$7.69
b.
$76.86
c.
$92.35
d.
$922.35
a.
$7.69
b.
$76.86
c.
$92.35
d.
$922.35
Answers
GPT-4o mini
To calculate Tim's homeowners insurance premium to add to his monthly mortgage payment, follow these steps:
1. **Determine how many hundreds are in the home's value**:
\[
\text{Hundreds in value} = \frac{\text{Home value}}{100} = \frac{279,500}{100} = 2,795
\]
2. **Calculate the insurance premium**:
\[
\text{Insurance premium} = \text{Hundreds} \times \text{Rate} = 2,795 \times 0.33 = 922.35
\]
Thus, the amount added to Tim's monthly mortgage payment for insurance is **$922.35**.
The correct answer is **d. $922.35**.
1. **Determine how many hundreds are in the home's value**:
\[
\text{Hundreds in value} = \frac{\text{Home value}}{100} = \frac{279,500}{100} = 2,795
\]
2. **Calculate the insurance premium**:
\[
\text{Insurance premium} = \text{Hundreds} \times \text{Rate} = 2,795 \times 0.33 = 922.35
\]
Thus, the amount added to Tim's monthly mortgage payment for insurance is **$922.35**.
The correct answer is **d. $922.35**.