Dan pays £714.73 a year in his car insurance. The insurance company reduces the price by 4.1%. How much does the insurance cost now? Give your answer to 2 DP.

Answer:

£682.57

Step-by-step explanation:

Dan pays £714.73 a year in his car insurance.

The price was reduced by 4.1%

To find the new cost of the insurance, we simply need to find 4.15% of £714.73 and then subtract that from the initial price of the insurance (£714.73)

4.5% of 714.73 is:

= £32.16

Then, the cost of the insurance now is:

£714.73 - £32.16 = £682.57

The insurance now costs £682.57

Final answer:

To calculate the new price of the insurance, we first calculate the discount, which is 4.1% of the original price (£714.73). Then, subtract this discount from the original price. Understanding percentage reduction is fundamental in calculating such discounts.

Explanation:

To calculate the new cost of car insurance, we will subtract the 4.1% reduction from the original price of £714.73. The percentage reduction can be calculated using the formula: Discount = Original Price x (Percentage / 100).

In our case, the discount is given by: Discount = £714.73 x (4.1 / 100).

Then, we subtract this discount from the original price to obtain the new price of insurance: New Price = Original Price - Discount.

Insurance premiums are a significant factor in personal finance, but factors like discounts can make them more affordable. It is crucial to understand the concept of percentage reductions to comprehend how discounts significantly affect the final cost for services such as insurance.

Learn more about Percentage Reduction here:

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