Question

You go to the Whome Insurance Company for auto insurance. They charge $525.00 as a base rate for six months of insurance for your vehicle. They offer a 15% discount for safe driver habits, and a 10% discount for an excellent credit rating or 5% for a good rating. They increase the rate by 5% and 10% respectively for a fair or poor credit rating. You have a fair credit rating and qualify for the safe driver discount. How much does the insurance cost you per month?

Answer 1

525 - 0.15*525 + 0.05*525
=
525*(1 - 0.15 + 0.05)
=
525*(0.9)
=
$472.50

Answer 2

$525.00 X 1.05 for a fair credit rating = $551.25 revised premium
$551.25 X 0.85 for safe driver habits = $468.56 final premium

So the semi-annual premium is $468.56 divided by 6 = $78.09

In the real world the insurer would impose an installment charge to defer your payments on a monthly basis.

Medal?

Answer 3

Bangkok is wrong