Answer: c. She can save $25.78 by paying the premium annually.
We arrive at the answer as follows:
Loraine's annual insurance premium $1,287.50
If she wants to pay monthly, she'll have to pay 8.5% of her annual premium.
So, her monthly premium will be [tex]\mathbf{1,287.50* 0.085 = 109.4375 \approx 109.44}[/tex]
Her total annual payment for insurance will be [tex]12*109.44 = 1313.28[/tex]
Her savings by paying insurance annually is [tex]\mathbf{1313.28 - 1287.50 = 25.78}[/tex]
