Future Business Leaders of America (FBLA) Business Calculations Practice Test

What is the minimum cost to insure a car with a basic insurance policy costing $750?

1. $1,075

2. $750

3. $1,025

4. $900

The correct answer is: $750

In this scenario, to determine the minimum cost to insure a car with a basic insurance policy, we focus solely on the cost of the policy itself. A basic insurance policy is stated to cost $750, which means that if one opts for only this policy, that amount represents the full and only expense associated with obtaining insurance. The minimum cost of $750 encapsulates the financial obligation necessary to secure the insurance coverage without any additional fees, taxes, or optional add-ons considered here. Therefore, since the question specifically asks for the minimum cost for the basic policy, the answer is straightforwardly the cost of the policy itself. The other values do not reflect just the minimum charge for the insurance, as they either add extra costs that are not mentioned in the original question or do not represent any similar insurance-related financial responsibility. Thus, when looking for the minimum, the basic insurance premium of $750 stands as the correct and sufficient answer.