Howard Hane Had Taken Out a $130,000 Fire Insurance Policy

question 59

Multiple Choice

Howard Hane had taken out a $130,000 fire insurance policy for his new restaurant at a rate of $.82 per $100. Nine months later, Howard canceled the policy and decided to move his store to a new location. The cost of the premium to Howard is:

• A) $1,066
• B) $863.46
• C) $1,606
• D) $836.64
• E) None of these