Question

Determine what Paul will have to pay on an annual bases for his $449,000 home if his insurance company is charging him $0.41 per $100 of value in his home.
a.
$153.41
b.
$220.76
c.
$1,840.90
d.
$2,649.10

Answer 1

First convert the value into hundreds: 449,000 ÷ 100 = 4,490.
Multiply by the rate: 4,490 × $0.41 = $1,840.90.

Answer: c. $1,840.90