In many cases, lenders allow homeowners to include their homeowners insurance premium with their monthly mortgage payment. Tim’s home is worth $279,500. If his homeowners insurance premium is $0.33 per $100, how much is added to his monthly mortgage payment for insurance?

The premium is $0.33 for each $100 of the home’s value. There are $279,500 ÷ $100 = 2,795 groups of $100, so the annual premium is 2,795 × $0.33 = $922.35. Divide by 12 months: $922.35 ÷ 12 ≈ $76.86 per month, so the correct choice is $76.86.

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