Greg just purchased a house for $450,000. His annual homeowners insurance premium is $0.42 per $100 of value. If his annual premium is divided into equal monthly payments, what will Greg have to pay on a monthly basis to keep his home insured?

The annual premium is $0.42 for each $100 of the home's value. There are $450,000 ÷ $100 = 4,500 groups of $100, so the annual premium is 4,500 × $0.42 = $1,890. Divide by 12 months: $1,890 ÷ 12 = $157.50 per month, which is choice B.

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