a building was insured for $7,500. the insurance cost $.25 per $100. what was the amount of the…

a building was insured for $7,500. the insurance cost $.25 per $100. what was the amount of the premium?\n$8.75\n$13.75\n$18.75\n$75.00\nnone of these

a building was insured for $7,500. the insurance cost $.25 per $100. what was the amount of the premium?\n$8.75\n$13.75\n$18.75\n$75.00\nnone of these

Answer

Explanation:

Step1: Find number of $100 - units$

Divide the insured - amount by 100. $\frac{7500}{100}=75$

Step2: Calculate the premium

Multiply the number of $100 - units$ by the cost per $100$. $75\times0.25 = 18.75$

Answer:

C. $18.75$