Question

a v. math of finance sem a-\
mobile ownership\
hendrix is looking to purchase car insurance and has received quotes from\
an insurance company. the base monthly premium is $50. however, the\
final premium is adjusted by the listed factors.\

• driver’s age: + $15 if under 25 years old; $0 otherwise\
• driving record: + $20 for any at - fault accidents in the past year; $0\

otherwise\

• type of car: + $10 for sports cars; $0 otherwise\
• chosen coverages and limits: + $5 for each additional coverage selected\

beyond the base coverage\
hendrix is 23 years old, has had one at - fault accident in the past year, drives\
a sports car, and opts for two additional coverages.\
what is hendrix’s car monthly insurance premium?\
$85\
$95\
$100\
$105

Explanation:

Step1: Identify base premium

The base monthly premium is \$50.

Step2: Calculate age adjustment

Hendrix is 23 (under 25), so +\$15. Now total: \(50 + 15 = 65\).

Step3: Calculate driving record adjustment

One at - fault accident, so +\$20. Now total: \(65 + 20 = 85\).

Step4: Calculate car type adjustment

Sports car, so +\$10. Now total: \(85 + 10 = 95\).

Step5: Calculate coverage adjustment

Two additional coverages, each +\$5, so \(2\times5 = 10\). Now total: \(95 + 10 = 105\).

Answer:

\$105