What would be the net difference in cost over a three-year period with a safety program if the program costs $400 to start, $15 a month to maintain, and saves 10% on a $300 monthly premium?

To find the net difference in cost over a three-year period with the safety program, we need to calculate the total costs of the program, the savings from the reduced premium, and then determine the net impact.

1. Calculate the total cost of the safety program:

• The initial cost to start the program is $400.

• The monthly maintenance cost is $15. Over three years (which is 36 months), this would amount to (15 \times 36 = 540).

• Therefore, the total cost for three years is (400 + 540 = 940).

2. Calculate the savings from the reduced premium:

• The program saves 10% on a $300 monthly premium. This means the savings per month is (0.10 \times 300 = 30).

• Over three years, the total savings from the reduction in premiums would be (30 \times 36 = 1080).

3. Determine the net difference in cost:

• The total savings from the program ($1080) minus the total cost of the program ($940) gives a net savings of (1080 - 940 = 140).

This calculation