After being involved in a car accident last month, ralph’s insurance company has increased his annual premium by $105.38. approximately what change will ralph see on his future monthly statements as a result of the change?
a.
ralph’s monthly insurance payment will not change.
b.
ralph’s monthly insurance payment will increase by $8.78.
c.
ralph’s monthly insurance payment will increase by $17.56.
d.
ralph’s monthly insurance payment will increase $105.38.

The correct option is Ralph’s monthly insurance payment will increase by $8.78

Step-by-step explanation:

We have given that Ralph’s insurance company has increased his annual premium by $105.38.

Ralph's annual premium increased by $105.38. Annual premium means yearly and since there are 12 months in a year. To find out his future monthly change we just divide the increased annual premium by 12. By doing so we get,

105.38/12 = 8.7816666666667

By rounding off upto 2 decimal places we get  $8.78

Thus the correct option is Ralph’s monthly insurance payment will increase by $8.78