Question

annual vs. monthly: insurance cost savings
maeve is comparing car insurance quotes from three companies for the same coverage amount. company a offers a monthly premium of $75, company b offers a monthly premium of $70, and company c offers a monthly premium of $80.
if maeve decides to pay the premium annually (12 months) instead of monthly, how much would maeve save by choosing the cheapest option compared to the most expensive option?
$120 $60 $100 $150

Explanation:

Step1: Find the monthly premiums

Company A: \$75, Company B: \$70, Company C: \$80. The cheapest monthly premium is \$70 (Company B), the most expensive is \$80 (Company C).

Step2: Calculate the annual difference

The monthly difference is \$80 - \$70 = \$10. Over 12 months, the total savings is \$10 \times 12 = \$120.

Answer:

\$120