Answer:
[tex]\$157.50[/tex]
Step-by-step explanation:
The computation of the amount pay on monthly basis is shown below:
But before that we need to find out the annual amount pay which is to be find out by applying the following formula
[tex]= Purchase\ value \times \frac {insurance\ premium}{percentage}[/tex]
where,
Purchase value of the house is $450,000
Insurance premium is $0.42
Percentage is $100
Now put these values to the above formula
So, the annual amount pay is
[tex]= \$450,000 \times \frac {\$0.42}{\$100}[/tex]
[tex]= \$1,890[/tex]
Now the monthly paying amount is
[tex]= \frac{Annual\ amount\ pay}{total\ number\ of\ months\ in\ a\ year}[/tex]
= [tex]\frac{\$1,890}{12\ months}[/tex]
[tex]= \$157.50[/tex]
