Hartford Corporation insured a building for $400,000 for one year at a premium rate of $6.50 per thousand. Six months later the Hartford Corporation sold the building and canceled the policy. The insurance company refunded the remaining half of the premium at the short-rate based on a penalty of 15% of the annual premium. Compute the amount that the six months of insurance cost the Hartford Corporation.

Question

Hartford Corporation insured a building for $400,000 for one year at a premium rate of $6.50 per thousand. Six months later the Hartford Corporation sold the building and canceled the policy. The insurance company refunded the remaining half of the premium at the short-rate based on a penalty of 15% of the annual premium. Compute the amount that the six months of insurance cost the Hartford Corporation.​

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The Answer of Hartford Corporation insured a building for $400,000 for one year at a premium rate of $6.50 per thousand. Six months later the Hartford Corporation sold the building and canceled the policy. The insurance company refunded the remaining half of the premium at the short-rate based on a penalty of 15% of the annual premium. Compute the amount that the six months of insurance cost the Hartford Corporation.​

Hartford Corporation Insured a Building for $400,000 for One Year