Rafael has renters insurance that costs $⁢20 per month. The policy covers $⁢20,000 of personal property and has a $⁢500 deductible. What was Rafael's total out-of-pocket cost for the year?

Rafael pays $20 each month, so his annual insurance cost is $20 × 12 = $240. The $500 deductible applies only if he makes a covered claim; no claim is mentioned. Therefore, his total out-of-pocket cost for the year is $240, choice A.

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