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Because Bernard has some health issues, he must pay [tex]$15\%$[/tex] more for life insurance. About how much more annually will a [tex]$\$[/tex]115,000[tex]$ 10-year term insurance at age 35 cost Bernard than someone of the same age without health issues?

\begin{tabular}{|l|l|l|}
\hline
\multirow{2}{*}{Age} & \multicolumn{2}{c|}{Annual Insurance Premiums (per \$[/tex]1,000 of face value)} \\
\cline{2-3}
& Male & Female \\
\hline
35 & \[tex]$1.40 & \$[/tex]1.36 \\
\hline
40 & \[tex]$1.64 & \$[/tex]1.59 \\
\hline
45 & \[tex]$2.07 & \$[/tex]2.01 \\
\hline
\end{tabular}

a. [tex]$\$[/tex]161[tex]$
b. $[/tex]\[tex]$185$[/tex]
c. [tex]$\$[/tex]1,073[tex]$
d. $[/tex]\[tex]$24$[/tex]

Please select the best answer from the choices provided.


Sagot :

Let's break down the problem step-by-step to find out how much more Bernard will pay for life insurance annually due to his health issues.

1. Determine the annual premium for a male of age 35 without health issues:
- The insurance amount is [tex]\( \$115,000 \)[/tex].
- The annual insurance premium per [tex]\( \$1,000 \)[/tex] of face value for a 10-year term policy at age 35 (for males) is [tex]\( \$1.40 \)[/tex].

First we need to calculate the total annual premium for a male without health issues:

[tex]\[ \text{Annual premium without health issues} = \left( \frac{\$115,000}{\$1,000} \right) \times \$1.40 \][/tex]

Simplifying this:

[tex]\[ \text{Annual premium without health issues} = 115 \times 1.40 = \$161.00 \][/tex]

2. Calculate how much more Bernard will pay due to his health issues:
- Bernard has health issues which increase his premium by [tex]\( 15\% \)[/tex].

To find the additional amount that Bernard has to pay, we need 15% of the annual premium calculated above:

[tex]\[ \text{Additional due to health issues} = \$161.00 \times 0.15 \][/tex]

Simplifying this:

[tex]\[ \text{Additional due to health issues} = \$24.15 \][/tex]

So, Bernard has to pay [tex]\( \$24.15 \)[/tex] more annually because of his health issues.

Of the given choices:
a. \[tex]$161 b. \$[/tex]185
c. \[tex]$1,073 d. \$[/tex]24

The closest answer here is:
[tex]\[ \boxed{24} \][/tex]