To determine how much Whitney's steel house is worth given her annual insurance premium is \[tex]$603.50 and using the provided insurance rate table, let's go through the steps systematically:
1. Identify the Premium Rate for Steel Building in a Rural Area:
- From the table, for a steel building (column labeled "Steel Building") in a rural area (row labeled "Rural"), the annual premium per \$[/tex]1000 of coverage is \[tex]$0.71.
2. Understand the Given Information:
- Whitney's annual premium is \$[/tex]603.50.
3. Set Up the Proportion:
- The annual premium Whitney pays is determined by how much coverage she has. The rate is \[tex]$0.71 per \$[/tex]1000 worth of the house.
4. Calculate the House Worth:
- To find the house worth, we need to determine how many units of \[tex]$1000 are being covered by the premium paid.
- Using the formula:
\[
\text{House Worth} = \left( \frac{\text{Annual Premium}}{\text{Premium Rate per \$[/tex]1000}} \right) \times 1000
\]
- Plugging in the values:
- Annual Premium = \[tex]$603.50
- Premium Rate per \$[/tex]1000 = \[tex]$0.71
- So,
\[
\text{House Worth} = \left( \frac{603.50}{0.71} \right) \times 1000
\]
5. Perform the Division:
- \[
603.50 \div 0.71 = 850,000
\]
- So, the house worth is:
\[
850,000 \times 1000 = 850,000 \text{ dollars}
\]
Therefore, Whitney's steel house is worth $[/tex]850,000.
None of the provided answer options (A, B, C, or D) in the question match this amount, indicating there may be a typographical error in the options. The correct house worth is $850,000.
