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Guillermo just purchased a house for $625,000. His annual homeowner’s insurance premium is $0.52 per $100 of value. If his annual premium is divided into equal monthly payments, what will Guillermo have to pay on a monthly basis to keep his home insu

Sagot :

adioabiola

The amount which Guillermo will have to pay on a monthly basis to keep his home insurance is; $270.83

Insurance premium

From the information given;

  • His annual homeowner’s insurance premium is $0.52 per $100 of value.

In essence, his annual home owner insurance premium is 0.52% of the house value and can be evaluated as follows;

  • 0.52% of $625,000 = $3,250.

Therefore, his annual premium is set at $3,250.

However, we are required to determine what will Guillermo have to pay on a monthly basis.

Therefore, we have; $3,250 spread equally over 12 months.

Therefore, we have; $3,250/12 = $270.83

Read more on insurance premium;

https://brainly.com/question/9696972

anthougo

The amount that Guillermo will pay monthly to keep his home insurance is $270.83.

What is an insurance premium?

An insurance premium is a charge that the insurer demands from the insured periodically as part of the pooling of risks under an insurance contract.

Data and Calculations:

House value = $625,000

Insurance premium rate = $0.52 per $100

Annual premium = $3,250 ($625,000 x $0.52/$100)

Monthly premium = $270.83 ($3,250/12)

Thus, the amount that Guillermo will pay monthly to keep his home insurance is $270.83.

Learn more about insurance premiums at https://brainly.com/question/25280754

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