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Arbaz's mom reminds him that he also needs to purchase car insurance. Arbaz finds a
car insurance policy that will cost him $150 a month for the first 12 months. The cost
is expected to decrease by 3.2% each year he has his license. How much is Arbaz
expected to pay, monthly, after one year? Show your work and explain your answer.

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Answer:

Arbaz is expected to pay $145.2 every moth after one year.

Step-by-step explanation:

We know that 150 dollars is owed every month. And after every 12 months the cost he has to pay a month decreases by 3.2% meaning we have to find what 3.2% is of 150. So we convert 3.2 into a decimal getting us 0.032

150 x 0.032 = 4.8

Now we know what 3.2% is of 150 so we subtract 4.8 from 250 and get 145.2

150 - 4.8 = 145.2

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