Question

Jay Miller insured his pizza shop for $200,000 for fire insurance at an annual rate per $100 of $.49. At the end of 10 months, Jay canceled the policy since his pizza shop went out of business. Using the tables in the Business Math Handbook that accompanies the course textbook, determine the refund to Jay.
A. $127.40
B. $980
C. $186.20
D. $852.60

Answer 1

Answer:

The answer is: B. $ 980.

Explanation:

Jay Miller assured his pizzeria for a total of $ 200,000 that would be $ 100 of $ 0.49 annually,

We divide the $ 200,000 by the $ 100 annually and he gives us: $ 2000,

which multiplied by $ 0.49 is equal to: 2000 x 0 , 49 = $ 980.

The answer is: B. $ 980.

Answer 2

First, we need to determine how much per month Jay was spending:


200,000 / 100 = 2000

(2000)(.49)= 980$ a month


Then, mutiply by the 10 months:

9800$ dollars