Asked by r

Allie and Sarah decided that they want to purchase renters insurance for the apartment they share. They made a list of all of the items to be covered by the insurance policy, along with their estimated values. If the items to be covered total more than $3000, the insurance company charges an annual premium of 23% of the total value of the items. If the items to be covered total $3000 or less, the insurance company charges an annual premium of 20% of the total value of the items.

Using the list of items Allie and Sarah provided, determine their monthly renters insurance premium.

Allie's Stuff
Sarah's Stuff
TV ($250)
Stereo ($75)
Stereo ($150)
Bicycle ($250)
CD's ($225)
CD's ($130)
DVD's ($385)
DVD's ($300)
Bicycle ($400)
IPOD ($80)
Microwave ($30)
Computer ($675)
Laptop Computer ($950)


a.
$65.00
b.
$74.75
c.
$325.00
d.
$780.00



Please select the best answer from the choices provided


A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
Total value = 250+75+150+250+225+130+385+300+400+80+30+675+950 = $3,900.
Since 3,900 > 3,000, annual premium = 23% of 3,900 = 0.23(3,900) = $897.
Monthly premium = 897/12 = $74.75.

Answer: B.