Cindy's apartment complex is offering renters insurance through their insurance company. The insurance company charges an annual premium of $565.00 which can be paid in equal payments throughout the year with her monthly rent. Cindy's monthly rent is currently $789.00. What will Cindy's new rent be if she includes the renters insurance?

Question

a.
$47.08
b.
$630.75
c.
$836.08
d.
$1,354.00

Answer 1

To determine Cindy's new rent if she includes the renter's insurance, we first need to calculate the monthly cost of the renters insurance.

The annual premium for the renters insurance is $565.00. To find the monthly cost, we divide this amount by 12 months:

\[ \text{Monthly insurance cost} = \frac{565.00}{12} \approx 47.08 \]

Now, we add this monthly insurance cost to Cindy's current monthly rent of $789.00:

\[ \text{New monthly rent} = 789.00 + 47.08 = 836.08 \]

Thus, Cindy's new rent will be:

c. $836.08