8
QuizMultiple Choice

Home and Mortgage Insurance — Quiz

Question 8 • Financial Algebra/Mathematics

What is the annual premium for mortgage insurance if the mortgage amount is $⁢200,000 and the insurance rate is 0.5% ?

Answer
A
1 dollars comma 000
B
800 dollars
C
1 dollars comma 200
D
1 dollars comma 500

Explanation

Convert the insurance rate to a decimal: 0.5% = 0.005. Multiply the mortgage amount by the rate: $200,000 × 0.005 = $1,000. Therefore, the annual premium is 1 dollars comma 000.

AI-written and checked against the verified answer.

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