Stephanie has a homeowners insurance policy for her $355,000 home with an annual premium of $0.42 per $100 of value and a deductible of $500. under this policy, in the event of a major mishap, stephanie would have a total annual out-of-pocket expense of (($355,000/100) x $0.42) + $500= $1,991. stephanie would like to lower her premium by increasing her deductible. if stephanie wants to increase her deductible to $1000, what annual premium would result in an annual out-of-pocket expense that is about the same as her current plan? a. $0.16 per $100 of value b. $0.28 per $100 of value c. $0.35 per $100 of value d. $0.46 per $100 of value

$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

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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

$6.42

step-by-step explanation: