Question
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? (1 point) Responses $85.00 $85.00 $270.60 $270.60 $300.50 $300.50 $332.00
Answers
GPT-4o mini
To find Jerome's approximate six-month premium using the formula \( P = DB \), where \( D \) is the driver risk factor and \( B \) is the basic six-month premium:
Given:
- \( D = 1.02 \)
- \( B = 500 \)
First, calculate \( P \):
\[
P = DB = 1.02 \times 500 = 510
\]
Jerome's six-month premium is $510. To find the monthly premium, divide the six-month premium by 6:
\[
\text{Monthly Premium} = \frac{P}{6} = \frac{510}{6} = 85
\]
Thus, Jerome's monthly premium is **$85.00**.
Given:
- \( D = 1.02 \)
- \( B = 500 \)
First, calculate \( P \):
\[
P = DB = 1.02 \times 500 = 510
\]
Jerome's six-month premium is $510. To find the monthly premium, divide the six-month premium by 6:
\[
\text{Monthly Premium} = \frac{P}{6} = \frac{510}{6} = 85
\]
Thus, Jerome's monthly premium is **$85.00**.