3
QuizMultiple Choice

Homeowners Insurance

Question 3 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Cesar’s annual homeowners insurance premium is $972.80. If his home is valued at $253,000, roughly how much is Cesar paying for homeowners insurance?

Answer
A
$0.13 per $100 of value
B
$0.19 per $100 of value
C
$0.26 per $100 of value
D
$0.38 per $100 of value

Explanation

To find the cost per $100 of home value, divide the annual premium by the home’s value and multiply by 100: ($972.80 ÷ $253,000) × 100 ≈ $0.384. Rounded to the nearest cent, Cesar pays about $0.38 per $100 of value, which is choice D.

AI-written and checked against the verified answer.

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