To determine the premium Reynaldo pays for property insurance per year, let's follow the steps based on the given information.
1. Identify the home’s value: Reynaldo’s all-wood home in the suburbs is valued at \[tex]$95,000.
2. Find the applicable premium rate: From the provided table, locate the premium rate for an all-wood building in the suburb area. According to the table, the annual premium per \$[/tex]100 of coverage for an all-wood building in the suburbs is \[tex]$0.83.
3. Calculate the basic premium:
- The home’s value is \$[/tex]95,000.
- The annual premium rate is \[tex]$0.83 per \$[/tex]100 of coverage.
4. Determine the premium per year:
- First, calculate how many units of \[tex]$100 are in the home's total value:
\[
\frac{\$[/tex]95,000}{\[tex]$100} = 950
\]
- Then, multiply the number of units by the premium rate:
\[
950 \times 0.83 = 788.5
\]
Thus, the premium Reynaldo pays for property insurance per year is \(\$[/tex]788.50\).
So, the correct answer is:
D. [tex]\(\$788.50\)[/tex]
