Select The Correct Answer.Jeff Has To Pay His Car Insurance Annually. If His Total Bill Is $744, How Much Money Should He Set Aside Each Month For Car Insurance? Round To The Nearest Dollar. A. $62 B. $124 C. $186 D. $372
Understanding the Problem
Jeff has to pay his car insurance annually, and his total bill is $744. To determine how much money he should set aside each month for car insurance, we need to divide the total bill by the number of months in a year.
Breaking Down the Problem
There are 12 months in a year. To find out how much Jeff should set aside each month, we can divide the total bill by 12.
Calculating the Monthly Payment
To calculate the monthly payment, we can use the following formula:
Monthly Payment = Total Bill / Number of Months
In this case, the total bill is $744, and the number of months is 12.
Monthly Payment = $744 / 12
Performing the Calculation
To perform the calculation, we can divide $744 by 12.
$744 ÷ 12 = $62
Rounding to the Nearest Dollar
Since we are asked to round to the nearest dollar, we can round $62.00 to $62.
Conclusion
Based on the calculation, Jeff should set aside $62 each month for car insurance.
Answer
The correct answer is A. $62.
Discussion
This problem requires basic arithmetic skills, specifically division. It is essential to understand the concept of dividing a total bill by the number of months to determine the monthly payment.
Real-World Application
This problem has real-world applications, such as calculating monthly payments for car insurance, credit card debt, or other recurring expenses.
Tips and Variations
- To make this problem more challenging, you can add a percentage increase to the total bill, such as a 10% increase.
- To make this problem easier, you can use a calculator to perform the calculation.
- You can also use this problem as a starting point to explore other mathematical concepts, such as compound interest or amortization.
Additional Practice Problems
Here are some additional practice problems to help you reinforce your understanding of calculating monthly payments:
- If a car insurance policy costs $960 per year, how much should you set aside each month?
- If a credit card debt of $1,200 needs to be paid off in 12 months, how much should you pay each month?
- If a car loan of $20,000 needs to be paid off in 60 months, how much should you pay each month?
Answer Key
- $80
- $100
- $333
Frequently Asked Questions (FAQs) =====================================
Q: What is the formula for calculating monthly payments?
A: The formula for calculating monthly payments is:
Monthly Payment = Total Bill / Number of Months
Q: How do I calculate the number of months in a year?
A: There are 12 months in a year. You can simply use the number 12 in the formula.
Q: What if I have a credit card debt that needs to be paid off in 24 months? How do I calculate the monthly payment?
A: To calculate the monthly payment, you can use the formula:
Monthly Payment = Total Debt / Number of Months
In this case, the total debt is $1,200, and the number of months is 24.
Monthly Payment = $1,200 / 24 Monthly Payment = $50
Q: What if I have a car loan that needs to be paid off in 60 months? How do I calculate the monthly payment?
A: To calculate the monthly payment, you can use the formula:
Monthly Payment = Total Loan / Number of Months
In this case, the total loan is $20,000, and the number of months is 60.
Monthly Payment = $20,000 / 60 Monthly Payment = $333.33
Q: Can I use a calculator to calculate the monthly payment?
A: Yes, you can use a calculator to calculate the monthly payment. Simply enter the total bill or debt and the number of months, and the calculator will give you the monthly payment.
Q: What if I have a percentage increase on my total bill? How do I calculate the monthly payment?
A: To calculate the monthly payment with a percentage increase, you can first calculate the total bill with the increase, and then use the formula:
Monthly Payment = Total Bill (with increase) / Number of Months
For example, if the total bill is $744 and there is a 10% increase, the new total bill would be:
$744 x 1.10 = $817.44
Monthly Payment = $817.44 / 12 Monthly Payment = $68.12
Q: Can I use this formula to calculate monthly payments for other types of expenses, such as rent or utilities?
A: Yes, you can use this formula to calculate monthly payments for other types of expenses, such as rent or utilities. Simply enter the total expense and the number of months, and the formula will give you the monthly payment.
Q: What if I have a variable income or irregular expenses? How do I calculate the monthly payment?
A: If you have a variable income or irregular expenses, it may be more challenging to calculate the monthly payment. In this case, you may want to consider using a budgeting app or consulting with a financial advisor to help you manage your finances.
Q: Can I use this formula to calculate monthly payments for a mortgage?
A: Yes, you can use this formula to calculate monthly payments for a mortgage. However, you will need to consider additional factors, such as the interest rate and the loan term, to get an accurate calculation.
Q: What if I have a tax deduction or other financial benefits that affect my monthly payment? How do I calculate the monthly payment?
A: If you have a tax deduction or other financial benefits that affect your monthly payment, you may want to consult with a financial advisor or tax professional to help you calculate the monthly payment.