math question?
Cameron corporation insured a building for $250,000 for one year at the premium rate of $6.30 per thousand. 4 months later they sold the building the canceled the policy. The insurance company refunded the remaining two-third of the premium at short-rate based on a penalty of 15% of the annual premium. Compute the amount that the 4months of insurance cost
a.) Premium for the whole year = 250 * 6.3 = $1575
b.) Eligible Refund amount = 2/3 * 1575 = 1050
c.) Penalty = 15% of 1575 = $236.25
So total premium cost = 1575 – 1050 + 236.25 = $761.25
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