Question

Q5. Hina and Sara both insure their properties with the Budget Insurance
Company
The cost of house insurance premiums with the Budget Insurance Company is
directly proportional to the value of the property being insured.
Hina pays premiums of $76 per month on his property valued at $152,000.
How much does Sara pay on her property valued at $259,000?​

Answer 1

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Premium is an amount paid periodically to the insurer by the insured for covering his risk. Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium.