Question

1. peters insurance company is raising his rates after he files a claim. he pays $75 per month and his insurance is set to increase by 30%. what will peters new monthly payment be?

$98
$85
$97.50
$100

Explanation:

Step1: Calculate the increase amount

First, find 30% of $75. The formula for finding a percentage of a number is $ \text{Percentage} \times \text{Number} $. So, 30% of 75 is $ 0.30 \times 75 = 22.5 $.

Step2: Add the increase to the original amount

Now, add this increase to the original monthly payment. The original payment is $75, so the new payment is $ 75 + 22.5 = 97.5 $? Wait, no, wait. Wait, 30% increase means the new amount is the original amount plus 30% of the original. Wait, 75 * 1.30. Let's recalculate. 75 * 1.30 = 97.5? Wait, but the options have $97.50 and $98. Wait, maybe I made a mistake. Wait, 75 * 0.3 = 22.5, 75 + 22.5 = 97.5. But the option is $97.50? Wait, but let's check again. Wait, 75 * 1.3 = 97.5. So the new payment is $97.50? But wait, the options have $98, $85, $97.50, $100. Wait, maybe the question is about a 30% increase? Wait, 75 * 1.3 = 97.5. So the answer should be $97.50? But let me check the calculation again. 30% of 75 is 22.5, 75 + 22.5 = 97.5. So the new monthly payment is $97.50. But wait, the option is there. So the correct answer is $97.50? Wait, but let me check the options again. The options are $98, $85, $97.50, $100. So $97.50 is an option. So the correct answer is $97.50.

Answer:

$97.50