Your car insurance premium is $2360 if paid annually. If you pay semiannually, you pay $1280. What is the annual cost if you decide to pay semiannually?

Question

Your car insurance premium is $2360 if paid annually. If you pay semiannually, you pay $1280. What is the annual cost if you decide to pay semiannually?

Answer 1

The annual cost of paying semi-annually would be $2,560. There is a $200 savings for paying annually.