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)

$85.00

$270.60

$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, we can substitute the given values into the formula.

Given:
- \( D = 1.02 \)
- \( B = 500 \)

Now, calculate \( P \):

\[
P = DB = 1.02 \times 500 = 510
\]

The six-month premium is $510.

To find the monthly premium, we divide the six-month premium by 6:

\[
\text{Monthly Premium} = \frac{510}{6} = 85
\]

Thus, the monthly premium will be **$85.00**.