3. A diamond ring valued at $7000 was insured at 80% of its value. What was the premium, if the rate was $6 per 1000?
A.$3.36
B.$4.20
C.$33.60
D.$42.00
E.$336.00
7000 * .8 = 5600
6(5600 / 1000) = ?
1 1/5
owerhwegti
To find the premium, we need to calculate 80% of the value of the diamond ring and then divide it by 1000 to account for the rate per 1000.
Step 1: Calculate 80% of $7000:
0.80 * $7000 = $5600
Step 2: Divide the value by 1000 to account for the rate per 1000:
$5600 / 1000 = $5.60
Step 3: Multiply the rate per 1000 by the calculated value:
$5.60 * 6 = $33.60
Therefore, the premium for the diamond ring insurance is $33.60. Option C.