Automobile Insurance 4A

Ruth buys a car for $48,668, and must pay her state 6% sales tax on the sale. Which expression identifies how much she will pay in sales tax?

• 6(48668)

• 0.06(48688)

• .6(48668)

• 48668÷0.06

Ruth buys a car for $48,668, and must pay her state 6% sales tax on the sale. How much she will pay in sales tax?

• $2.92

• $29,200.80

• $2,920.08

• $51,588.08

Ruth has decided to drop her collision insurance because her car is getting old. Her total annual premium is $916, of which $170.60 covers collision insurance.

What will her annual premium be after she drops the collision insurance?

• $745.40

• $1086.60

Gary has $10,000 worth of property damage insurance. He collides with two parked cars and causes $12,000 worth of damage. How much money must Gary pay after the insurance company pays its share?

• $10,000

• $12,000

• $1,000

• $2,000

Eric must pay his $875 annual insurance premium by himself. He works at a job after school.

Which expression will indicate how much he must save each month to pay this premium?

• 875 ÷ 12

• 875 × 12

• 875 - 12

The fee that a driver pays to have automobile insurance is called a deductible.

• True

• False

A car goes 576 miles on 1 tank. It holds 12 gallons. The car gets about 42 miles per gallon.

• True

• False

A car traveling at 70 miles per hour will drive 300 miles in 5 ½ hours.

• True

• False

How much sales tax is there on $4,800 at 3 1/2 %?

• $16.80

• $16,800

• $1,680

• $168.00

Kaylee has 100/300/50 liability insurance and $50,000 PIP insurance. She drives through a stop sign, hits a telephone pole, and ricochets into a minivan.

The pole will cost $7,000 to replace. Kaylee also did $6,700 worth of damage to the minivan. What insurance will cover this, and how much will the company pay? Select both answers.

• Property Damage

• $13,700

• PIP

• $6,700