To determine how much Joshua has to pay for insurance per year, we'll follow a step-by-step process based on the details provided:
1. Identify key details:
- The value of Joshua's belongings: \[tex]$25,000.
- The premium rate for insuring the contents in an all-brick building in the city: \$[/tex]0.43 per \[tex]$100 of coverage.
2. Calculate the total premium:
- First, determine how many units of \$[/tex]100 are there in the total value of the belongings. Since his belongings are worth \[tex]$25,000, this means:
\[
\frac{25000}{100} = 250 \text{ units of } \$[/tex]100
\]
- Next, multiply the number of \[tex]$100 units by the annual premium rate per \$[/tex]100:
[tex]\[
\text{Insurance Cost} = 250 \times 0.43 = \$107.50
\][/tex]
3. Compare with the given options:
- Option A: \[tex]$150.00
- Option B: \$[/tex]178.65
- Option C: \[tex]$173.50
- Option D: \$[/tex]107.50
4. Conclusion:
The calculated insurance cost is \[tex]$107.50, which matches option D.
Therefore, Joshua will have to pay \$[/tex]107.50 for insurance per year.
