Answer to Question #116170 in Financial Math for Jissel

Question

Ruth has decided to drop her collision insurance because her car is getting old. Her total annual premium is $916, of which $170.60 covers collision insurance

Answer 1

After Ruth drops her collusion insurance, her annual premium will be:

$\text{Premium}=960-170.6$

$\text{Annual Premium}= 745.4$

The premium that paid quarterly are:

$\text{Quaterly payments}=\dfrac{\text{Annual premiums}}{4}$

$\text{Quaterly payments}=\dfrac{745.6}{4}=186.4$