after reviewing her driving record for the past 3 years, cindys insurance company offers her a good driver…

after reviewing her driving record for the past 3 years, cindys insurance company offers her a good driver discount of 4.5%. her original policy was based on the premiums listed below. what is her new annual premium including the discount? cindys auto insurance policy type of insurance coverage coverage limits annual premiums bodily injury $50/100,000 $31.75 property damage $25,000 $120.50 collision $500 deductible $275.75 comprehensive $100 deductible $100.00 a. $504.24 b. $523.50 c. $528.00 d. $551.76

after reviewing her driving record for the past 3 years, cindys insurance company offers her a good driver discount of 4.5%. her original policy was based on the premiums listed below. what is her new annual premium including the discount? cindys auto insurance policy type of insurance coverage coverage limits annual premiums bodily injury $50/100,000 $31.75 property damage $25,000 $120.50 collision $500 deductible $275.75 comprehensive $100 deductible $100.00 a. $504.24 b. $523.50 c. $528.00 d. $551.76

Answer

Explanation:

Step1: Calculate original total premium

Add up all original annual premiums: $31.75 + 120.50+275.75 + 100.00=$528.00$

Step2: Calculate discount amount

The discount rate is $4.5%=0.045$. The discount amount is $0.045\times528 = 23.76$

Step3: Calculate new premium

Subtract the discount amount from the original total premium: $528 - 23.76=$504.24$

Answer:

a. $$504.24$