what is the premium on an 8000 insurance policy if the premium cost $75 per $100 of insurance

Question

what is the premium on an 8000 insurance policy if the premium cost $75 per $100 of insurance

Answer 1

Hi Jerry;

($75)[($8000)/($100)]

Let's note the fact that within the brackets, the unit of $ is in the numerator and denominator.  It cancels...

($75)[(8000)/(100)]

($75)[(8000)/(100)]

($75)(80)

$6000