allie and sarah decided that they want to purchase renters insurance for the apartment they share. they made…

allie and sarah decided that they want to purchase renters insurance for the apartment they share. they made a list of all of the items to be covered by the insurance policy, along with their estimated values. if the items to be covered total more than $3000, the insurance company charges an annual premium of 23% of the total value of the items. if the items to be covered total $3000 or less, the insurance company charges an annual premium of 20% of the total value of the items.\n\nusing the list of items allie and sarah provided, determine their monthly renters insurance premium.\n\nallies stuff\ntv ($250)\nstereo ($150)\ncds ($225)\ndvds ($385)\nbicycle ($400)\nmicrowave ($30)\nlaptop computer ($950)\n\nsarahs stuff\nstereo ($75)\nbicycle ($250)\ncds ($130)\ndvds ($300)\nipod ($80)\ncomputer ($675)

allie and sarah decided that they want to purchase renters insurance for the apartment they share. they made a list of all of the items to be covered by the insurance policy, along with their estimated values. if the items to be covered total more than $3000, the insurance company charges an annual premium of 23% of the total value of the items. if the items to be covered total $3000 or less, the insurance company charges an annual premium of 20% of the total value of the items.\n\nusing the list of items allie and sarah provided, determine their monthly renters insurance premium.\n\nallies stuff\ntv ($250)\nstereo ($150)\ncds ($225)\ndvds ($385)\nbicycle ($400)\nmicrowave ($30)\nlaptop computer ($950)\n\nsarahs stuff\nstereo ($75)\nbicycle ($250)\ncds ($130)\ndvds ($300)\nipod ($80)\ncomputer ($675)

Answer

Explanation:

Step 1: Calculate the total value of Allie's items.

$250 + 150 + 225 + 385 + 400 + 30 + 950 = 2390$

Step 2: Calculate the total value of Sarah's items.

$75 + 250 + 130 + 300 + 80 + 675 = 1510$

Step 3: Calculate the combined total value of all items.

$2390 + 1510 = 3900$

Step 4: Determine the annual premium rate.

Since $3900 > 3000$, the rate is $23%$.

Step 5: Calculate the total annual premium.

$3900 \times 0.23 = 897$

Step 6: Calculate the monthly premium.

$\frac{897}{12} = 74.75$

Answer:

The monthly renters insurance premium is $74.75.