A company purchases property insurance and pays $600 in advance for the next 6 months of coverage. Assuming even application over the 6-month period, how much insurance will be used each month? Select one.

Answer 1

To find out how much insurance will be used each month, we take the total amount paid for insurance and divide it by the number of months the coverage lasts.

The company paid $600 for 6 months of coverage.

Insurance used each month = Total amount paid / Number of months
Insurance used each month = $600 / 6 = $100

Therefore, the company will use $100 worth of insurance each month.