Answer:
$0.28 per $100 of value
Step-by-step explanation:
We are given Amount of insurance policy for Stephanie = $ 355,000
Annual premium = $ 0.42 per $100
Deductible amount = $ 500
Total Annual out of pocket expense = [($355,000/100) x $0.42] + $500
= $1,991
Now, New Deductible amount that Stephanie wants = $ 1000
So,Let annual premium be x .
So, now to find the annual premium in an annual out-of-pocket expense that is about the same as her current plan when deductible amount increases to $1000
⇒[tex](\frac{355000}{100} x)+1000=1991[/tex]
⇒[tex] 3550x=1991 -1000[/tex]
⇒[tex] 3550x=991[/tex]
⇒[tex]x=\frac{991}{3550}[/tex]
⇒[tex]x=0.279[/tex]
Thus x = 0.279≈0.28
Hence the annual premium would result in an annual out-of-pocket expense that is about the same as her current plan is $0.28 per $100 of value
