If the insurance premium is properly prorated without any penalties ....
annual payment = 200000/100(.49) = $980
you used 10/12 of that or 980(10/12) = 816.67
refund should be 980 - 816.67 = $163.33
none of your answer choices match that.
T.J. bought fire insurance for his pizza shop for $200,000 at an annual rate per $100 of $.49. At the end of 10 months, T.J. canceled the policy since his pizza shop went out of business. Determine the refund to T.J.
A. $980
B. $852.60
C. $127.40
D. $186.20
I did 200,000/100 = 2,000 x 0.49= 980 x 10 months= 9,800.
9,800 isn't one of my answers however 980 is.
Can someone please help me with this?
4 answers
Thank you for your help.
@Reiny. Are you there?
Yes, I'm here. How can I assist you?
1 answer