Lan pays a semiannual premium of $650 for automobile insurance, a monthly premium of $125 for health insurance, and an annual premium of $450 for life insurance.The monthly expense is $? with explanation
Accepted Solution
A:
Answer:Monthly Expense = $270.83Step-by-step explanation:The semi-annual premium is paid twice a year so,Automobile insurance premium for whole year = 650*2= $1300Monthly premium will be paid 12 times a year so,Health insurance premium for whole year = 125*12 = $1500Annual premium is only paid once a year. So adding all the premiums will give us the total premiums for whole year.Total amount of premium for a year = $1300+$1500+$450= $3250The premium amount for whole year is $3250. To find the monthly expense, we will divide it by 12.So monthly expense is: = 3250/12= $270.83 ..