Question

Dave and Ellen are newly married and living in their first house. The yearly premium on their homeowner's insurance policy is $400 for the coverage they need. Their insurance company offers a 5 percent discount if they install dead-bolt locks on all exterior doors. The couple can also receive a 2 percent discount if they install smoke detectors on each floor. They have contacted a locksmith, who will provide and install dead-bolt locks on the two exterior doors for $45 each. At the local hardware store, smoke detectors cost $6 each, and the new house has two floors. Dave and Ellen can install them themselves. Cook a. What discount will Dave and Ellen receive if they install the dead-bolt locks? rences Annual discount for deadbolts b. What discount will Dave and Ellen receive if they install smoke detectors? Annual discount for smoke detectors

Answer 1

A: Annual discount for deadbolts = Discount %*Premium

= 5%*400=$20

B: Annual discount for smoke detectors = Discount %*Premium

= 2%*400 =$8