Question

Killian pays an annual premium of $1,325 for automobile insurance, including comprehensive coverage of up to $850,000. He pays this premium for 12 years without needing to file a single claim. Then he gets into an accident during bad weather, for which no one is at fault. Killian is not injured, but his car valued at $46,700 is totaled. His insurance company pays the claim and Killian replaces his car. If he did not have automobile insurance, how much more would have Killian paid for damages than what he had invested in his insurance policy?

Answer 1

i just need you to check and see if i got the right answer. I got $62600

@jim_thompson5910

Answer 2

how much does Killian (ominous name if you ask me) pay to the insurance company?

what is the total amount of premium payments made over the 12 years?

Answer 3

wait is it 1325?

Answer 4

that's the amount paid for 1 year

what is the amount over 12 years?

Answer 5

15900

Answer 6

boy was i wrong haha i got 30800 is that right?

Answer 7

now subtract: 46,700 - 15,900

Answer 8

thank you!!

Answer 9

np