22
QuizMultiple Choice

N/A — Exam

Question 22 • Financial Math

A landlord wishes to insure a rental property worth $⁢500,000 with a policy that has an annual rate of 0.7% What is the annual premium for this insurance?

Answer
A
3 dollars comma 500
B
3 dollars comma 000
C
3 dollars comma 250
D
2 dollars comma 750

Explanation

Convert the annual rate of 0.7% to a decimal: 0.007. Multiply the property value by the rate: $500,000 × 0.007 = $3,500. Therefore, the annual premium is $3,500, choice C.

AI-written and checked against the verified answer.

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