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Mathematics, 19.08.2020 21:01 791197

Tara and Levi are trying to decide between homeowners insurance policies offered by two different agencies. AAA Insurance has offered to insure their home for an annual premium of $0.38 per $100 with a $500 deductible. Thompson’s Insurance has offered to insure the same home for an annual premium of $0.26 per $100 with an deductible of $1,000. Insurance Company Annual Premium (per $100) Deductible AAA Insurance $0.38 $500 Thompson's Insurance $0.26 $1,000 The house Tara and Levi purchased is valued at $425,000. Which of the following statements accurately describes the difference between the two plans? a. AAA Insurance is cheapest if Tara and Levi experience an incident that results in severe damage or loss to their home. b. AAA Insurance would be cheapest if Tara and Levi can avoid any incidents that result in severe damage or loss to their home. c. Thompson’s Insurance is cheaper even if Tara and Levi experience an incident that results in severe damage or loss to their home. d. Thompson’s will be more expensive whether or not Tara and Levi experience an incident that results in severe damage or loss to their home. Please select the best answer from the choices provided A B C D

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