Question

v. math of finance sem a- a mobile ownership insurance premium adjustments by driver profile and vehicle type the table details how various factors affect insurance premiums, listing both increases and decreases in rates for risk - related adjustments. factor rate adjustment base rate for clean record $800 age under 30 +$200 each minor accident +$150 high - end car +$200 regular car no adjustment rural area -$100 urban area +$50 defensive driving course -$50 each speeding ticket +$100 bundling car and home insurance -$50 jaqueline is a 28 - year - old driver with a clean record and has completed a defensive driving course. jaqueline drives a regular car and lives in an urban area. what is jaquelines annual premium? $1,000 $1,050 $800 $900

Explanation:

Step1: Identify applicable adjustments

Base rate (clean record): \$800
Age under 30: +\$200
Regular car: No adjustment
Urban area: +\$50
Defensive driving course: -\$50

Step2: Calculate total premium

Start with base rate: \$800
Add age adjustment: \$800 + \$200 = \$1,000
Add urban area adjustment: \$1,000 + \$50 = \$1,050
Subtract defensive driving: \$1,050 - \$50 = \$1,000

(Note: Minor accident, high - end car, rural area, speeding ticket, and bundling adjustments do not apply here.)

Answer:

\$1,000