A driver paid n dollars for auto insurance for the year 1997.
A driver paid n dollars for auto insurance for the year 1997. This annual premium was raised by p percent for the year 1998; for each of the years 1999 and 2000, the premium was decreased by 1/6 from the previous year’s figure. If the driver’s insurance premium for the year 2000 was again n dollars, what is the value of p?
Answer/Solution
44
Steps/Work
Premium in 1997 = n;
Premium in 1998 = n(1+p/100);
Premium in 1999 = 5/6*n(1+p/100);
Premium in 2000 = 5/6*5/6*n(1+p/100).
Given that premium in 2000 = 5/6*5/6*n(1+p/100)=n --> 5/6*5/6*(1+p/100)=1 --> 1+p/100=36/25 --> p/100=11/25=44/100 --> p=44.
Answer: D.
Premium in 1998 = n(1+p/100);
Premium in 1999 = 5/6*n(1+p/100);
Premium in 2000 = 5/6*5/6*n(1+p/100).
Given that premium in 2000 = 5/6*5/6*n(1+p/100)=n --> 5/6*5/6*(1+p/100)=1 --> 1+p/100=36/25 --> p/100=11/25=44/100 --> p=44.
Answer: D.