42
QuizMultiple Choice

Simple Interest

Question 42 • (Kapuschinsky)WCA 3424 Consumer Applications 1st nine weeks 26-27

Jordy was living in a third story apartment in his complex. Up there he was paying an annual renters insurance premium of $325.00. When an opportunity to move to the ground floor came up, he jumped on it, but found out that, since burglaries are more common on ground floor apartments, his renters insurance premium would go up by 18%. What is his new annual renter’s insurance premium.

Answer
A
$58.50
B
$31.96
C
$268.96
D
$383.50

Explanation

An 18% increase means Jordy pays his original premium plus 18% of $325. The increase is 0.18 × $325 = $58.50, so the new premium is $325 + $58.50 = $383.50. Therefore, the correct choice is $383.50.

AI-written and checked against the verified answer.

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