Loraine black wants to pay her $1,287.50 annual insurance premium monthly. how much can she save by paying the premium annually? percent of annual premium monthly premiums=8.5% quarterly premiums= 25.5% semi-annual premiums= 50.5% a) $20.75 b) $18.75 c) $25.78 d) $21.75

c. She can save $25.78 by paying the premium annually.

We arrive at the answer as follows:

Loraine's annual insurance premium   $1,287.50

If she wants to pay monthly, she'll have to pay 8.5% of her annual premium.

So, her monthly premium will be

Her total annual payment for insurance will be

Her savings by paying insurance annually is

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy