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Whitney's steel house is located in the country. If her building property insurance is [tex]$603.50 per year, how much is her house worth?

\[
\begin{tabular}{|c|c|c|c|c|c|c|c|c|}
\hline
Annual & Premium & per \$[/tex]1000 & of coverage: & & & & & \\
\hline
& Brick & & Steel & & Mixed & & Wood & \\
\hline
\begin{tabular}{l}
Area \\
rating
\end{tabular}
& Building & Contents & Building & Contents & Building & Contents & Building & Contents \\
\hline
City & 0.39 & 0.43 & 0.5 & 0.54 & 0.55 & 0.65 & 0.65 & 0.76 \\
\hline
Suburb & 0.45 & 0.52 & 0.56 & 0.83 & 0.72 & 0.74 & 0.83 & 0.85 \\
\hline
Rural & 0.6 & 0.69 & 0.71 & 0.8 & 0.89 & 0.91 & 1 & 1.08 \\
\hline
\end{tabular}
\]

A. [tex]$95,000$[/tex]
B. [tex]$56,000$[/tex]
C. [tex]$85,000$[/tex]
D. [tex]$17,350$[/tex]


Sagot :

To determine how much Whitney's steel house is worth given her annual insurance premium is \[tex]$603.50 and using the provided insurance rate table, let's go through the steps systematically: 1. Identify the Premium Rate for Steel Building in a Rural Area: - From the table, for a steel building (column labeled "Steel Building") in a rural area (row labeled "Rural"), the annual premium per \$[/tex]1000 of coverage is \[tex]$0.71. 2. Understand the Given Information: - Whitney's annual premium is \$[/tex]603.50.

3. Set Up the Proportion:
- The annual premium Whitney pays is determined by how much coverage she has. The rate is \[tex]$0.71 per \$[/tex]1000 worth of the house.

4. Calculate the House Worth:
- To find the house worth, we need to determine how many units of \[tex]$1000 are being covered by the premium paid. - Using the formula: \[ \text{House Worth} = \left( \frac{\text{Annual Premium}}{\text{Premium Rate per \$[/tex]1000}} \right) \times 1000
\]
- Plugging in the values:
- Annual Premium = \[tex]$603.50 - Premium Rate per \$[/tex]1000 = \[tex]$0.71 - So, \[ \text{House Worth} = \left( \frac{603.50}{0.71} \right) \times 1000 \] 5. Perform the Division: - \[ 603.50 \div 0.71 = 850,000 \] - So, the house worth is: \[ 850,000 \times 1000 = 850,000 \text{ dollars} \] Therefore, Whitney's steel house is worth $[/tex]850,000.

None of the provided answer options (A, B, C, or D) in the question match this amount, indicating there may be a typographical error in the options. The correct house worth is $850,000.