To determine how much Randy will have to pay for insurance per year for his belongings, we need to follow these steps:
1. Identify the Value of the Belongings:
Randy's belongings amount to \[tex]$22,000.
2. Determine the Annual Premium Rate:
Since Randy's apartment is located in a suburban area and the complex has a mixed composition, we need to refer to the annual premium rates specified for a suburban, mixed composition.
According to the table, the annual premium per \$[/tex]100 of coverage for contents in this category is \[tex]$0.74.
3. Calculate the Insurance Cost per Year:
We will use the formula:
\[
\text{Insurance Cost} = \left( \frac{\text{Value of Belongings}}{100} \right) \times \text{Annual Premium per \$[/tex]100}
\]
Substituting the given values:
[tex]\[
\text{Insurance Cost} = \left( \frac{22,000}{100} \right) \times 0.74
\][/tex]
4. Perform the Calculation:
[tex]\[
\text{Insurance Cost} = 220 \times 0.74 = 162.80
\][/tex]
Therefore, Randy will have to pay \[tex]$162.80 per year for insuring his belongings.
Among the options given:
- A. \$[/tex]150.00
- B. \[tex]$107.50
- C. \$[/tex]178.65
- D. \[tex]$162.80
The correct answer is D. \$[/tex]162.80.
