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

1 answer

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.