Rachel just purchased a homeowners insurance policy for her new home that costs $0.43 per $100. Her home is worth $387,500. What is Rachel’s annual homeowners insurance premium?

The rate is $0.43 for every $100 of the home's value. Rachel's home is worth 3,875 groups of $100, so the annual premium is 3,875 × $0.43 = $1,666.25. The correct choice is $1,666.25.

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