Sylvia makes two payments a year of $263 each for renter's insurance.

Question

She makes four payments a year of $260 each for auto insurance. How
much must she budget monthly for these two items?
a. $526
b. $1,566
c. $130.50
d. $1,040

Answer 1

First, we need to find the total amount Sylvia pays for renter's insurance per year:

2 payments/year * $263/payment = $526/year

Next, we need to find the total amount Sylvia pays for auto insurance per year:

4 payments/year * $260/payment = $1040/year

To find the total amount Sylvia budgets for both items per month, we add the two annual amounts and divide by 12 (number of months in a year):

($526/year + $1040/year) / 12 months = $130.50/month

Therefore, the answer is c. $130.50.