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Today at 11:10 PM
Mathematics

Answered

Kit pays an annual premium of $1,575 for automobile insurance, including comprehensive coverage of up to $750,000. He pays this premium for 14 years without needing to file a single claim. Then he gets into an accident during bad weather, for which no one is at fault. Kit is not injured, but his car valued at $51,900 is totaled. His insurance company pays the claim and Kit replaces his car. If he did not have automobile insurance, how much more would have Kit paid for damages than what he had invested in his insurance policy?

$ 73, 950
$ 50, 325
$ 29, 850
$ 22, 050

ANSWER IS APPRECIATED, however if you can just direct me on the right path then I would greatly appreciate that as well.

Answer :

Today at 11:15 PM

29850. 14 x 1575 is how much he paid. Subtract that from the cost of the car ($51900). 51900 -22050 = 29850

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