George's car insurance comes due every six month. What is the best way to budget for this expense?
A.He should wait for the premium notices to arrive and pay them from his current income.
B.He should put the entire amount of the premium in a savings account the first time he gets paid at the beginning of the year.That way, adequate funds will be there when he needs them.
C.He should averge the annual cost of the insurance by dividiing the total premium by 12. Then, he should budget the resulting monthly amount under the heading,Insurance. Finally,he would do well to put that monnthly amount in his savings account and pay the premiums when they come due from the amount he has saved
D.He should get ask his employer to withhold the amount needed to pay the premiumms from his paychcheck.
i don't have an answer to this can you give me a clue ? please!
Many people don't have this amount of money at one time -- unless they put some away each month.
... or are lucky enough to have insurance with a company that will take monthly payments.
The insurance companies I know charge extra for monthly, rather than annual or semi-annual payments.
whats the answer?
Whats the answer please.
Can some one gave the right answer for this please
I say C.He should averge the annual cost of the insurance by dividiing the total premium by 12. Then, he should budget the resulting monthly amount under the heading,Insurance. Finally,he would do well to put that monnthly amount in his savings account and pay the premiums when they come due from the amount he has saved
because in order to officially know how much one should set aside they must plan a specific goal and calculate to make sure they aren't going over their budget or going into the money they have set aside for another important bill.
the answer is C
Sure! Budgeting for expenses like car insurance can help manage your finances effectively. To choose the best option from the given choices, let's evaluate each one:
A. George can wait for the premium notices to arrive and pay them from his current income. This approach might work if he has enough flexibility in his monthly budget to accommodate the semi-annual payments. However, it may lead to cash flow issues if he doesn't have enough funds readily available.
B. George can put the entire amount of the premium in a savings account at the beginning of the year. This approach ensures that adequate funds will be available when the premium is due. However, it relies on George having the full premium amount upfront, which may not be feasible for some individuals.
C. George can average the annual cost of the insurance by dividing the total premium by 12. He can budget the resulting monthly amount under the heading of "Insurance" and put that monthly amount into a savings account. Then, he can pay the premiums when they come due from the amount he has saved. This option spreads the cost evenly throughout the year, making it easier to manage financially.
D. George can ask his employer to withhold the amount needed to pay the premiums from his paycheck. This option allows for automatic deductions, ensuring that the funds are set aside each month. However, it relies on George's employer offering such a service.
Considering these options, option C seems to be the best way for George to budget for his car insurance expense. So, the answer is C.