In many cases, property taxes when you own a home are paid every six months, homeowner's
Insurance is paid once per year, and car insurance is paid every six months. One homeowner pays
$1,450 in property taxes twice a year, $946 in homeowner's insurance annually, and makes car
Insurance payments of $294.32 and $335.40 every six months. If this homeowner wants to spread
These expenses out by putting some money each month into a savings account, how much should she
Put aside per month?
A)$304.62
B)$504.29
C)$425.45
D)$372.98

Question

Quizplus · Accepted Answer

To determine the monthly amount needed, we need to calculate the total annual cost of these expenses and divide by 12.

Property taxes = $1,450 x 2 = $2,900 annually
Homeowner's insurance = $946 annually
Car insurance = $294.32 + $335.40 = $629.72 every six months or $1,259.44 annually 
Total annual cost = $2,900 + $946 + $1,259.44 = $5,105.44

To find the monthly amount needed:

$5,105.44 / 12 = $425.45

Therefore, the homeowner should put aside $425.45 per month to cover these expenses. Choice C is the correct answer. To figure out how much the homeowner should put aside each month, we need to first determine the total annual cost of these expenses.

For property taxes: $1,450 x 2 = $2,900 per year 
For homeowner's insurance: $946 per year 
For car insurance: ($294.32 + $335.40) x 2 = $1,259.44 per year

Total annual cost = $2,900 + $946 + $1,259.44 = $5,105.44

To calculate the monthly amount, we divide the total annual cost by 12: 
$5,105.44 ÷ 12 = $425.45

Therefore, the homeowner should put aside $425.45 each month to cover these expenses.

The correct answer is C, $425.45.

In Many Cases, Property Taxes When You Own a Home