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Kurtis had purchased a renters insurance policy for his new apartment at an annual premium of $588. 0. The items covered in the policy included a bicycle kept locked to the railing in front of the apartment. When the bicycle was stolen, the insurance company covered the replacement cost of the bicycle, but told Kurtis that, because of the loss, his premium would increase by 35% if he wished to continue with the policy. What would Kurtis’ new annual premium be if he chose to keep the policy. A. $36. 75 b. $66. 15 c. $441. 00 d. $793. 80 Please select the best answer from the choices provided A B C D.

Sagot :

Based on the information given Kurtis new annual premium is d. $793.80.

Using this formula

New annual premium=(Increase in premium percentage)×Annual premium

Where:

Increase in premium percentage=(1+.35)=1.35

Annual premium=$588

Let plug in the formula

New annual premium=(1+.35)×$588

New annual premium=1.35×$588

New annual premium=$793.80

Inconclusion Kurtis new annual premium is d. $793.80.

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Answer:

D: $793.80

Explanation:

Kurtis had purchased a renters insurance policy for his new apartment at an annual premium of $588.00.  The items covered in the policy included a bicycle kept locked to the railing in front of the apartment.  When the bicycle was stolen, the insurance company covered the replacement cost of the bicycle, but told Kurtis that, because of the loss, his premium would increase by 35% if he wished to continue with the policy.  What would Kurtis’ new annual premium be if he chose to keep the policy.

a.$36.75

b.$66.15

c.$441.00

d.$793.80