Question

tomobile ownership
alessias car insurance cost - benefit analysis
alessia is evaluating two different car insurance policies to determine
which is more cost - effective based on their circumstances. the base
premium for policy a is $700 per year, which can be reduced by selecting a
higher deductible. policy b starts at $650 per year with no option for a
deductible adjustment but offers a discount for installing safety features in
the car.
if alessia chooses a $1,000 deductible for policy a, the premium is reduced
by 10%.
what is her adjusted annual premium for policy a?
$

Explanation:

Step1: Identify the base premium

The base premium for Policy A is $700 per year.

Step2: Calculate the discount amount

The premium is reduced by 10%, so the discount is 10% of $700.
To find 10% of 700, we calculate $700\times0.10 = 70$.

Step3: Subtract the discount from the base premium

The adjusted premium is the base premium minus the discount: $700 - 70 = 630$.

Answer:

630