Cy makes two payments a year of $131 each for life insurance. He makes
12 payments a year of $46 each for health insurance. How much must he
budget monthly for these two items?
a. $262
b. $67.83
c. $814
d. $552
First, we need to find Cy's annual expenses for each insurance type:
Life insurance: 2 payments per year x $131 per payment = $262 per year
Health insurance: 12 payments per year x $46 per payment = $552 per year
Then, we add the two annual expenses together to get Cy's total annual insurance expenses:
$262 + $552 = $814 per year
To find the monthly budget, we divide the annual expenses by 12:
$814 รท 12 = $67.83 per month
Therefore, the answer is b. $67.83.