Question

1. for the three - part question that follows, provide your answer to each part in the given workspace. identify each part with a coordinating response. be sure to clearly label each part of your response as part a, part b, and part c.

frances is looking to purchase renter’s insurance. use the table below to answer the questions.

	deductible	lump payment fee	yearly premium
plan b	$1,500	$100	$1,380

part a: determine the monthly premium for plan a. show your work.
part b: determine the monthly premium for plan b. show your work.
part c: compare and contrast insurance plans a and b. use details to support your answer.

Explanation:

Part A

Step1: Recall the formula for monthly premium

To find the monthly premium, we divide the yearly premium by 12 (since there are 12 months in a year). The formula is \( \text{Monthly Premium} = \frac{\text{Yearly Premium}}{12} \).

Step2: Substitute the value for Plan A

For Plan A, the yearly premium is $1,800. So we calculate \( \frac{1800}{12} \).

\( \frac{1800}{12} = 150 \)

Step1: Recall the formula for monthly premium

Again, we use the formula \( \text{Monthly Premium} = \frac{\text{Yearly Premium}}{12} \).

Step2: Substitute the value for Plan B

For Plan B, the yearly premium is $1,380. So we calculate \( \frac{1380}{12} \).

\( \frac{1380}{12} = 115 \)

• Similarities: Both plans have a deductible, a lump payment fee, and a yearly premium, and both are renter's insurance plans.
• Differences:
• Deductible: Plan A has a $750 deductible, while Plan B has a $1,500 deductible (Plan B’s deductible is higher).
• Lump Payment Fee: Plan A has a $350 fee, Plan B has a $100 fee (Plan B’s fee is lower).
• Yearly Premium: Plan A’s yearly premium is $1,800, Plan B’s is $1,380 (Plan B’s premium is lower).
• Monthly Premium: From Parts A and B, Plan A’s monthly premium is $150, Plan B’s is $115 (Plan B’s monthly cost is lower).

In summary, Plan B has a higher deductible but lower fees and premiums (both yearly and monthly) compared to Plan A. Plan A has a lower deductible but higher fees and premiums.

Answer:

The monthly premium for Plan A is $150.

Part B