To calculate Anissa's annual property insurance premium, we need to determine the premium for both the building and the contents of the house. We'll follow these steps:
1. Identify the appropriate premium rates:
According to the given table, since Anissa's house is a brick house located in the country (rural area), we will use the following rates:
- Building premium rate per [tex]$100 of coverage: $[/tex]0.60
- Contents premium rate per [tex]$100 of coverage: $[/tex]0.69
2. Calculate the premium for the building:
The value of the house (building) is [tex]$85,000.
- First, divide the house value by $[/tex]100 to find the number of [tex]$100 units:
\[
\frac{\$[/tex]85,000}{100} = 850 \text{ units}
\]
- Next, multiply the number of units by the building premium rate:
[tex]\[
850 \text{ units} \times \$0.60/\text{unit} = \$510.00
\][/tex]
3. Calculate the premium for the contents:
The value of the house contents is [tex]$15,000.
- First, divide the contents value by $[/tex]100 to find the number of [tex]$100 units:
\[
\frac{\$[/tex]15,000}{100} = 150 \text{ units}
\]
- Next, multiply the number of units by the contents premium rate:
[tex]\[
150 \text{ units} \times \$0.69/\text{unit} = \$103.50
\][/tex]
4. Calculate the total annual property insurance premium:
Finally, we add the building premium and the contents premium to get the total premium:
[tex]\[
\$510.00 + \$103.50 = \$613.50
\][/tex]
Given the above steps and calculations, the total annual property insurance premium for Anissa's brick house and its contents in the rural area is [tex]$\$[/tex]613.50[tex]$.
Thus, the correct answer is:
B. \$[/tex]613.50
