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Because of an accident Royce was involved in, his insurance company has increased his annual premium for auto insurance by 5.2%. His original policy was set up using the premiums listed below. What is his new annual premium after the increase in the accident?
a. $514.76
b. $543.00
c. $548.20
d. $571.24

Answer :

jepessoa

Answer:

D) $571.24

Explanation:

Royce' premiums for the  previous year were:

  • bodily injury $22.50
  • property damage $144.75
  • collision $275.75
  • comprehensive $100

The total premium of the policy was $543

Since the premiums will increase by 5.2%, the new total premium will be = $543 x 1.052 = $571.24

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