To calculate Ralph's annual renters insurance premium, we first need to determine the total value of the items he wants to insure.
Here are the values of each item:
- TV: $150
- VCR: $60
- DVD Player: $100
- Stereo: $80
- Sofa: $200
- Entertainment Center: $100
- Microwave: $40
- Coffee Maker: $20
- Computer: $850
- Bicycle: $200
- Coin Collection: $600
- Pictures/Posters: $175
Now, let's sum these values:
\[ \text{Total Value} = 150 + 60 + 100 + 80 + 200 + 100 + 40 + 20 + 850 + 200 + 600 + 175 \] Calculating the sum:
\[ 150 + 60 = 210 \] \[ 210 + 100 = 310 \] \[ 310 + 80 = 390 \] \[ 390 + 200 = 590 \] \[ 590 + 100 = 690 \] \[ 690 + 40 = 730 \] \[ 730 + 20 = 750 \] \[ 750 + 850 = 1600 \] \[ 1600 + 200 = 1800 \] \[ 1800 + 600 = 2400 \] \[ 2400 + 175 = 2575 \]
So, the total value of Ralph's items is $2575.
Next, we calculate the annual renters insurance premium by applying the rate of 16.53%:
\[ \text{Insurance Premium} = \text{Total Value} \times \text{Rate} \]
Substituting the values we have:
\[ \text{Insurance Premium} = 2575 \times 0.1653 \]
Now, let's calculate that:
\[ \text{Insurance Premium} = 2575 \times 0.1653 \approx 426.48 \]
Based on the given options: a. $17.88 b. $35.48 c. $214.58 d. $425.65
The closest answer to our calculation ($426.48) is option d. $425.65.
Thus, Ralph's annual renters insurance premium will be approximately $425.65.
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