Answer:
8.0%
Step-by-step explanation:
We have been given that James Harmon pays $850.80 per year for his life insurance. If Mr. Harmon were to pay the premiums monthly, the payments would be $76.57.
First of all, we will find the amount paid for the year using the monthly rate by multiplying $76.57 by 12 (1 year = 12 months).
[tex]\text{Amount paid for the year using the monthly rate}=\$76.57\times 12[/tex]
[tex]\text{Amount paid for the year using the monthly rate}=\$918.84[/tex]
Now, we will use percent change formula.
[tex]\text{Percent change}=\frac{\text{Final value}-\text{Initial value}}{\text{Initial value}}\times 100[/tex]
[tex]\text{Percent change}=\frac{\$918.84-\$850.80}{\$850.80}\times 100[/tex]
[tex]\text{Percent change}=\frac{\$68.04}{\$850.80}\times 100[/tex]
[tex]\text{Percent change}=0.0799717912552891\times 100[/tex]
[tex]\text{Percent change}=7.99717912552891\%[/tex]
[tex]\text{Percent change}\approx 8.0\%[/tex]
Therefore, Mr. Harmon is paying 8.0% more for the year using the monthly rate.
