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Martin Insurance Company issued insurance policies on buildings A and B in the same area for one ...

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Martin Insurance Company issued insurance policies on buildings A and B in the same area for one ...

Martin Insurance Company issued insurance policies on buildings A and B in the same area for one year at a premium rate of $5.50 per thousand. Building A was insured for $75,000. Building B was insured for $83,000. Martin Insurance Company had a short-rate refund policy based on a penalty of 10% of the annual premium. At the end of the second month, building A was sold and the policy canceled by the building owner. At the end of the sixth month, Martin Insurance Company canceled the insurance on building B. Compute the amount Martin Insurance Company earned altogether by insuring buildings A and B.

Textbook

Contemporary Business Mathematics for Colleges

Edition: 16^th

Authors: Deitz, Southam

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Thanks for your help!!

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