Consider a homeowner insurance policy for a property valued at $⁢400,000 The policy's annual premium rate is 0.3% What would be the cost of the annual premium?

Convert the annual premium rate to a decimal: 0.3% = 0.003. Multiply the property value by the rate: $400,000 × 0.003 = $1,200. Therefore, the annual premium is $1,200, choice A.

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