Without the table indicating the stated premium rates and applicable discounts, the monthly property insurance cannot be computed. Hence, on the assumption that the rate is 2.5% and the discount applicable is 7.5% the premium per month will come to $152.24
The simple definition of Property Insurance is, it is an insurance policy that covers a policyholder for the structure of a building and its contents against stated or agreed perils.
Given (based on assumption) that the applicable annual rate is 2.5%
and that:
Hence annual premium will be:
= (67,000 + 12000) * (2.5/100) * 0.925
Annual Premium Payable = $1,826.89.............A
Recall that we are asked to derive the monthly Insurance premium.
This is thus given as: Answer in A/12
→ 1,826.89/12
= $152.24
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