Question

16. please show your work

Dave and Ellen are newly married and living in their first house. The yearly premium on their homeowner’s insurance policy is $450 for the coverage they need. Their insurance company offers a 5 percent discount if they install dead-bolt locks on all exterior doors. The couple can also receive a 2 percent discount if they install smoke detectors on each floor. They have contacted a locksmith, who will provide and install dead-bolt locks on the two exterior doors for $60 each. At the local hardware store, smoke detectors cost $8 each, and the new house has two floors. Dave and Ellen can install them themselves.

a.	What discount will Dave and Ellen receive if they install the dead-bolt locks? (Round your answer to two decimal places.)

Annual discount for deadbolts

$

b.	What discount will Dave and Ellen receive if they install smoke detectors?

Annual discount for smoke detectors

$

Answer 1

1: Discount that Dave and Ellen receive if they install the dead-bolt locks

= Rate*Annual premium

= 5%*450

= $22.5

2: Discount that Dave and Ellen receive if they install smoke detectors

= rate* annual premium

= 2%*450

= $9