Fionna is looking at saving some money on her car insurance. She drives a Nissan...

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Accounting

Fionna is looking at saving some money on her car insurance. She drives a Nissan Murano worth $35,000. If she increases her deductible from $500 to $1,000, her annual savings on her premium could be 9 percent. If her annual premium is $2,000.
a. How many years would she have to be incident free in order to justify the higher deductible (assume no interest for simplicity).(Round your answer to 2 decimal places.)
Number of years
b. Is it worth it?
multiple choice 1
Yes
No
c. Is the deduction now worth the cost of insurance, if her car was a Pontiac Vibe worth only $2,500?

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