# 1. Matt and Kristin are newly married and living in their first house. The yearly premium on their h

 1. Matt and Kristin are newly married and living in their first house. The yearly premium on their homeowner’s insurance policy is \$400 for the coverage they need. Their insurance company offers a 6 percent discount if they install dead-bolt locks on all exterior doors. The couple can also receive a 1 percent discount if they install smoke detectors on each floor. They have contacted a locksmith, who will provide and install dead-bolt locks on the two exterior doors for \$40 each. At the local hardware store, smoke detectors cost \$5 each, and the new house has two floors. Kristin and Matt can install them themselves.

Assuming their insurance rates remain the same, how many years will it take Matt and Kristin to earn back in discounts the cost of the dead-bolts? The cost of the smoke detectors?

A: Years to recover cost of dead bolts: & smoke detectors

2. Becky Fenton has 25/40/5 automobile insurance coverage. If two other people are awarded \$30,000 each for injuries in an auto accident in which Becky was judged at fault, how much of this judgment would the insurance cover?

A: Insurance payment:

 3. Kurt Simmons has 25/50/25 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. Damage to the parked car was \$13,800, and damage to the store was \$20,800.
(a)

What amount will the insurance company pay for the damages?

 (b) What amount will Kurt have to pay?