After reviewing her driving record for the past 3 years, Cindy’s insurance company offers her a good driver discount of 4. 5%. Her original policy was based on the premiums listed below. What is her new annual premium including the discount? Cindy's Auto Insurance Policy Type of Insurance Coverage Coverage Limits Annual Premiums Bodily Injury $50/100,000 $31. 75 Property Damage $25,000 $120. 50 Collision $500 deductible $275. 75 Comprehensive $100 deductible $100. 00 a. $504. 24 b. $523. 50 c. $528. 00 d. $551. 76.

Then since percent shows per 100 (since cent means 100), thus we will first divide the whole part in 100 parts and then we multiply it with b so that we collect b items per 100 items(that is exactly what b per cent means).

Thus, that thing in number is

[tex]\dfrac{a}{100} \times b[/tex]

The table given is:

Type of Insurance Coverage Coverage Limits Annual Premiums

Bodily Injury $50/100,000 $31. 75

Property Damage $25,000 $120. 50

Collision $500 deductible $275. 75

Comprehensive $100 deductible $100. 00

Her total annual premium = 31.75 + 120.50 + 275.75 + 100 = $528

Discount offered to her = 4.5% of $528 = [tex]\dfrac{528}{100} \times 4.5 = 23.76[/tex] (in dollars)

The new premium that she needs to pay after discount = Old premium - discount = $528 - $23.76 = $504.24

Thus, Cindy's new annual premium including the discount would be given by: Option A: $504.24

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