because of an accident royce was involved in, his insurance company has increased his annual premium for…

because of an accident royce was involved in, his insurance company has increased his annual premium for auto insurance by 5.2%. his original policy was set up using the premiums listed below. what is his new annual premium after the increase for the accident? royces auto insurance policy type of insurance coverage coverage limits annual premiums bodily injury $25/$50,000 $22.50 property damage $50,000 $144.75 collision $500 deductible $275.75 comprehensive $100 deductible $100.00 a. $514.76 b. $543.00 c. $548.20 d. $571.24 please select the best answer from the choices provided

because of an accident royce was involved in, his insurance company has increased his annual premium for auto insurance by 5.2%. his original policy was set up using the premiums listed below. what is his new annual premium after the increase for the accident? royces auto insurance policy type of insurance coverage coverage limits annual premiums bodily injury $25/$50,000 $22.50 property damage $50,000 $144.75 collision $500 deductible $275.75 comprehensive $100 deductible $100.00 a. $514.76 b. $543.00 c. $548.20 d. $571.24 please select the best answer from the choices provided

Answer

Explanation:

Step1: Calculate original total premium

$22.50 + 144.75+275.75 + 100.00=543$

Step2: Calculate the increase amount

The increase rate is $5.2%=0.052$. The increase amount is $543\times0.052 = 28.236$.

Step3: Calculate the new premium

The new premium is the original premium plus the increase amount, so $543+28.236 = 571.236\approx571.24$.

Answer:

d. $571.24$