Answers 26-27 Ignite Financial Literacy Personal Finance - EL3403 Homeowners InsuranceQuestion 7

7

QuizMultiple Choice

Homeowners Insurance

Question 7 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Cindy's apartment complex is offering renters insurance through their insurance company. The insurance company charges an annual premium of $565.00 which can be paid in equal payments throughout the year with her monthly rent. Cindy's monthly rent is currently $789.00. What will Cindy's new rent be if she includes the renters insurance?

Answer

A

$47.08

B

$630.75

C

$836.08

D

$1,354.00

Explanation

Divide the $565 annual insurance premium by 12 months: $565 ÷ 12 ≈ $47.08 per month. Add that monthly amount to Cindy’s current rent: $789 + $47.08 = $836.08. The new rent is $836.08, choice c.

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