choose correct choice
Jerome uses the formula, P =
DB, to find his approximate sixmonth
premium when his driver
risk factor, D, is 1.02 and the
basic six-month premium is
$500.
What will his monthly premium
be?
(1 point)
$85.00
$270.60
$300.50
$332.00
The correct choice is $270.60.
To find the monthly premium, we need to divide the six-month premium by 6.
$500 / 6 = $83.33
Now we need to multiply this by the driver risk factor D:
$83.33 x 1.02 = $84.99
Rounded to the nearest cent, Jerome's monthly premium will be $84.99.