Question

After being involved in a car accident last month, Ralph’s insurance company has increased his annual premium by $105.38. Approximately what change will Ralph see on his future monthly statements as a result of the change?
a.
Ralph’s monthly insurance payment will not change.
b.
Ralph’s monthly insurance payment will increase by $8.78.
c.
Ralph’s monthly insurance payment will increase by $17.56.
d.
Ralph’s monthly insurance payment will increase $105.38.

Answer 1

b. Ralph’s monthly payment will increase by about $105.38 ÷ 12 ≈ $8.78.