Mary is 18 years old and has just purchased comprehensive motor vehicle insurance. The following excesses apply to claims for at-fault motor vehicle accidents. - Basic excess of $850 for each claim - An additional age excess of $1600 for drivers under 25 years of age - An additional age excess of $400 for drivers 25 years of age or over with no more than 2 years driving experience How much would Mary be required to pay as excess if she made a claim as the driver at fault in a car accident?

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Mary is 18 years old and has just purchased comprehensive motor vehicle insurance - HSC - SSCE Mathematics Standard - Question 6 - 2019 - Paper 1

Question 6

Mary is 18 years old and has just purchased comprehensive motor vehicle insurance. The following excesses apply to claims for at-fault motor vehicle accidents. - Ba... show full transcript

Worked Solution & Example Answer:Mary is 18 years old and has just purchased comprehensive motor vehicle insurance - HSC - SSCE Mathematics Standard - Question 6 - 2019 - Paper 1

Step 1

Determine Basic Excess

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Answer

The basic excess for any claim is $850.

Step 2

Consider Age Excess

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Answer

Since Mary is 18 years old, she falls under the category of drivers under 25 years of age. Therefore, there is an additional age excess of $1600.

Step 3

Calculate Total Excess

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Answer

To calculate the total excess Mary must pay, add the basic excess and the additional age excess:

$850 + 1600 = 2450$

Step 4

Final Answer

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Answer

Thus, the total excess Mary would be required to pay is $2450, which corresponds to option C:$ 850 + $1600.

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