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Question:

# A new phone costs $800. Margaret has insurance on her phone that covers 73% of the cost of a new phone if something happens. If her phone is stolen or broken, how much will she have to pay for a new phone? A$216
explanation

To solve this problem, we multiply the cost of a new phone by the percentage she would have to pay. We know that her insurance covers 73%, so she will have to pay the difference.
100% – 73% = 27%
So, Margaret has to pay 27% of the total cost of the phone. Let’s convert 27% into a decimal in order to solve. We convert a percentage into a decimal by dividing by 100.
27% = $27 \div 100 = 0.27$
Multiply the percentage Margaret is responsible for (0.27) times the total cost of the phone (800) to calculate the dollar amount Margaret will pay for the phone.
$800 \times 0.27= 216$
She will have to pay \$216.

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