Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

Stephanie has a homeowners insurance policy for her $355,000 home with an annual premium of $0. 42 per $100 of value and a deductible of $500. Under this policy, in the event of a major mishap, Stephanie would have a total annual out-of-pocket expense of Left-bracket (355,000 dollars divided by 100) times 42 cents right-bracket 500 dollars = 1,991 dollars. Stephanie would like to lower her premium by increasing her deductible. If Stephanie wants to increase her deductible to $1000, what annual premium would result in an annual out-of-pocket expense that is about the same as her current plan? a. $0. 16 per $100 of value b. $0. 28 per $100 of value c. $0. 35 per $100 of value d. $0. 46 per $100 of value Please select the best answer from the choices provided A B C D.

Sagot :

anthougo

The annual premium that would result in Stephanie's annual out-of-pocket expense that is about the same as her current plan is b. $0. 28 per $100 of value.

Data and Calculations:

Home value = $355,000

Annual premium rate = $0.42 per $100

Deductible  $500

Total annual out-of-pocket expense = $1,991 ($355,000 x 0.0042 + $500)

New deductible = $1,000

New annual premium rate = $0.28

Total annual out-pocket expense based on the new premium rate = $1,994 ($355,000 x 0.0028 + $1,000)

Thus, the annual premium that would result in Stephanie's annual out-of-pocket expense that is about the same as her current plan is Option b.

Learn more: brainly.com/question/18618915

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.