Sarah pays $48.00 each month to keep her house insured. If her house is valued at $223,050, about how much is Sarah paying per $100 in homeowners insurance annually?

Question

a.
$0.13
b.
$0.26
c.
$1.55
d.
$3.09

Answer 1

To determine how much Sarah is paying per $100 in homeowners insurance annually, we need to follow these steps:

1. First, calculate her annual insurance cost by multiplying her monthly payment by 12: \[ 48.00 \text{ per month} \times 12 \text{ months} = 576.00 \text{ annually} \]

2. Next, determine how many hundreds of dollars are in the value of her home. Since her house is valued at $223,050, we divide this by 100: \[ \frac{223,050}{100} = 2,230.50 \]

3. Now, divide the annual insurance cost by the number of hundreds of dollars in the home's value: \[ \frac{576.00}{2,230.50} \approx 0.258 \]

4. To express this in the context of per $100, we find that she pays approximately $0.26 per $100.

Thus, the answer is: b. $0.26