Question

Rudy has been paying an annual homeowners insurance premium of $1,106.30 ($0.37 per $100 of value) since he first purchased his house. For the past six months, Rudy has completed some major improvements to his house to improve its overall value. If Rudy successfully adds $50,000 to the value of his house, what will his new annual homeowners insurance premium be?

Answer 1

First you would do 50,000/1,106.30 which would then be $45.20 per $100 value), so the premium will be 50,000/100 which is 500 then you would times that by $0.37 which would now be 185 and going around again and going back to 1,106.30 and multiplying would then be 185.
Answer: $204,665.50
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