you go to the whome insurance company for auto insurance the charge $525.00 as a base rate for six months of insurance for your vehicle they offer a 15% discount for safe driver habits and a 10% discount for an excellent credit rating of 5% for a good rating the increase the rate by 5% and 10% respectively for a fair or poor credit rating you have a fair credit rating and qualify for the safe driver discount how much do the insurance cost you per month?
$78.09
$85.90
$74.38
$91.88
525 * 0.85 = 446.25
446.25 * 1.05 = 468.56
468.56 / 6 = ?
To calculate the insurance cost per month, we need to determine the total discount and the adjusted rate.
First, let's calculate the safe driver discount:
15% of $525.00 = $78.75
Next, let's calculate the adjustment for a fair credit rating:
5% increase of $525.00 = $26.25
Adjusted rate for a fair credit rating = $525.00 + $26.25 = $551.25
Now, let's subtract the safe driver discount from the adjusted rate:
$551.25 - $78.75 = $472.50
Finally, let's divide the adjusted rate by 6 (months) to get the monthly insurance cost:
$472.50 / 6 = $78.75
Therefore, the insurance cost per month is $78.75.
To calculate the cost of insurance per month, we need to follow these steps:
1. Calculate the discount for a fair credit rating: Since it is mentioned that a fair credit rating increases the rate by 5%, we need to subtract 5% from the base rate.
Base rate: $525.00
Fair credit rating increase: 5%
Discounted rate: $525.00 - (5% of $525.00)
Calculating the fair credit rating increase:
(5/100) * 525 = $26.25
Discounted rate = $525.00 - $26.25 = $498.75
2. Calculate the discount for a safe driver: Since you qualify for the safe driver discount, we need to subtract an additional 15% from the discounted rate obtained in step 1.
Discounted rate after fair credit rating increase: $498.75
Safe driver discount: 15%
Discounted rate with safe driver discount: $498.75 - (15% of $498.75)
Calculating the safe driver discount:
(15/100) * 498.75 = $74.81
Discounted rate with safe driver discount = $498.75 - $74.81 = $423.94
3. Calculate the cost per month: To find the cost per month, divide the discounted rate obtained in step 2 by the number of months (6).
Cost per month = $423.94 / 6
Calculating the cost per month:
423.94 / 6 = $70.66
Therefore, the cost of insurance per month is approximately $70.66.
None of the provided options match this amount.