Answered

Explore a diverse range of topics and get answers from knowledgeable individuals on IDNLearn.com. Whether it's a simple query or a complex problem, our experts have the answers you need.

After reviewing her driving record for the past 3 years, Cindy's insurance company offers her a good driver discount of [tex]$4.5\%$[/tex]. Her original policy was based on the premiums listed below. What is her new annual premium including the discount?

\begin{tabular}{|l|c|c|}
\hline \multicolumn{2}{|c|}{Cindy's Auto Insurance Policy} \\
\hline Type of Insurance Coverage & Coverage Limits & Annual Premiums \\
\hline Bodily Injury & [tex]$\$[/tex]50 / 100,000[tex]$ & $[/tex]\[tex]$31.75$[/tex] \\
\hline Property Damage & [tex]$\$[/tex]25,000[tex]$ & $[/tex]\[tex]$120.50$[/tex] \\
\hline Collision & [tex]$\$[/tex]500[tex]$ deductible & $[/tex]\[tex]$275.75$[/tex] \\
\hline Comprehensive & [tex]$\$[/tex]100[tex]$ deductible & $[/tex]\[tex]$100.00$[/tex] \\
\hline
\end{tabular}

a. [tex]\$504.24[/tex]

b. [tex]\$523.50[/tex]

c. [tex]\$528.00[/tex]

d. [tex]\$551.76[/tex]

Sagot :

GinnyAnsweridn
To determine Cindy's new annual premium including the good driver discount, let's go through the step-by-step calculation:

1. Calculate the total original premium costs:

- Bodily Injury premium: \[tex]$31.75 - Property Damage premium: \$[/tex]120.50
- Collision premium: \[tex]$275.75 - Comprehensive premium: \$[/tex]100.00

Adding these amounts together:

[tex]\[ \text{Total Premium} = 31.75 + 120.50 + 275.75 + 100.00 = 528.00 \][/tex]

2. Determine the discount amount:

- The discount rate is 4.5%, or 0.045 in decimal form.

Calculate the discount amount by multiplying the total premium by the discount rate:

[tex]\[ \text{Discount Amount} = 528.00 \times 0.045 = 23.76 \][/tex]

3. Calculate the new premium after applying the discount:

Subtract the discount amount from the total premium:

[tex]\[ \text{New Premium} = 528.00 - 23.76 = 504.24 \][/tex]

Thus, Cindy's new annual premium after applying the discount is:

[tex]\[ \boxed{504.24} \][/tex]

So, the correct answer is:
a. [tex]$\$[/tex]504.24$
We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and come back for more insightful information.