Mary Rose pays her auto insurance premiums quarterly. Her annual premium last year was $1,640.00. When she increased her deductibles in the middle of the year, her quarterly premium was reduced by $45.00. What was her quarterly premium for each of the last two quarters of last year?

Mary Rose

Her quarterly premium for each of the last two quarters of last year is:

Quarter 3 = $365 and

Quarter 4 = $365.

Explanation:

a) Data and Calculations:

Annual premium last year = $1,640.00

Quarterly premium will be = $410 ($1,640/4)

Reduction in quarterly premium from the middle of the year = $45.00

Quarterly premium for each of the last two quarters of last year will be =

$365 ($410 - $45).

b) Quarterly premium is equal to annual premium divided by 4 (since there are four quarters in a year).  The reduction in quarterly premium only affected the last two quarters.  As a result, the quarterly premium for quarters three and four will be reduced to $365 ($410 - $45).