Ralph wants to purchase a renters insurance policy for his new apartment. His insurance company charges an annual premium of 16.53% of the approximate value of the items he owns and is keeping in his apartment. Below is a list of items Ralph made of the items he has in his apartment that he would like to be insured with his policy. What will Ralph’s annual renters insurance premium be?Ralph's StuffValue TV$150 VCR$60 DVD Player$100 Stereo$80 Sofa$200 Entertainment Center$100 Microwave$40 Coffee Maker$20 Computer$850 Bicycle$200 Coin Collection$600 Pictures/Posters$175
Add the value of all the items: $150 + $60 + $100 + $80 + $200 + $100 + $40 + $20 + $850 + $200 + $600 + $175 = $2,575. The annual premium is 16.53% of that total: $2,575 × 0.1653 = $425.6475, which rounds to $425.65. The correct choice is $425.65.
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