Answers 26-27 Ignite Financial Literacy Personal Finance - EL3403 Auto InsuranceQuestion 10

10

QuizMultiple Choice

Auto Insurance

Question 10 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

For the past 16 months, Susie has been paying $126.50 each month to her insurance company. After causing an accident last month, her insurance company notified her that her monthly payment will be increased by $21.25. What increase in her annual premium did Susie’s insurance company apply as a result of the accident?

Answer

A

$21.25

B

$125.60

C

$147.75

D

$255.00

Explanation

The increase is $21.25 each month, and an annual premium covers 12 months. Multiply $21.25 by 12 to get $255.00. Therefore, the increase in Susie’s annual premium is $255.00, choice D.

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