Brian pays £475.29 a year on his car insurance. The insurance company reduces the price by 2.1%. How much does the insurance cost now? Give your answer rounded to 2 DP.

The cost of new insurance is £465.30 and this can be determined by using the unitary method.

Given :

The following steps can be used to determine the new insurance cost:

Step 1 - The unitary method can be used to determine the new insurance cost.

Step 2 - If the price of insurance is reduced by 2.1% then the remaining percentage is:

= 100 - 2.1

= 97.9%

Step 3 - If the 100% price of the insurance is £475.29 then the 97.9% is equal to:

Multiply 97.9 by 475.29 in the above expression.

Further, simplify the above expression.

= £465.30

So, the cost of new insurance is £465.30.

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Step-by-step explanation:

we know that

The insurance company reduces the price by 2.1%

Remember that

The actual cost of £475.29 a year represent the 100%

so

To find out the new insurance cost, multiply the original cost by the factor 0.979