Garnet Corporation insured a building for $370,000 for one year at a premium rate of $6.50 per thousand. Three months later the Garnet Corporation sold the building and canceled the policy. The insurance company refunded the remaining three-quarters of the premium at the short-rate based on a penalty of 10% of the annual premium. Compute the amount the insurance company refunded.

Question

​Garnet Corporation insured a building for $370,000 for one year at a premium rate of $6.50 per thousand. Three months later the Garnet Corporation sold the building and canceled the policy. The insurance company refunded the remaining three-quarters of the premium at the short-rate based on a penalty of 10% of the annual premium. Compute the amount the insurance company refunded.

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The Answer of ​Garnet Corporation insured a building for $370,000 for one year at a premium rate of $6.50 per thousand. Three months later the Garnet Corporation sold the building and canceled the policy. The insurance company refunded the remaining three-quarters of the premium at the short-rate based on a penalty of 10% of the annual premium. Compute the amount the insurance company refunded.

​Garnet Corporation Insured a Building for $370,000 for One Year

Garnet Corporation Insured a Building for $370,000 for One Year