Answered

Find solutions to your problems with the expert advice available on IDNLearn.com. Join our interactive community and get comprehensive, reliable answers to all your questions.

Jade wants to buy a [tex]\$200,000[/tex] term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10-year policy?

\begin{tabular}{|c|c|c|c|c|}
\hline \multirow[t]{2}{*}{Age} & \multicolumn{4}{|c|}{Annual Life Insurance Premium (per [tex]\$1000[/tex] of face value)} \\
\hline & \multicolumn{2}{|c|}{5-Year Term} & \multicolumn{2}{|c|}{10-Year Term} \\
\hline & Male & Female & Male & Female \\
\hline 30 & 3.98 & 3.66 & 6.06 & 5.72 \\
\hline 31 & 4.08 & 3.76 & 6.13 & 5.79 \\
\hline 32 & 4.19 & 3.87 & 6.30 & 5.85 \\
\hline 33 & 4.30 & 3.98 & 6.38 & 5.93 \\
\hline 34 & 4.42 & 4.10 & 6.45 & 6.01 \\
\hline 35 & 4.54 & 4.22 & 6.53 & 6.09 \\
\hline
\end{tabular}

a. [tex]\$1,290[/tex]
b. [tex]\$1,202[/tex]
c. [tex]\[tex]$6,010[/tex]
d. [tex]\$[/tex]820[/tex]

Sagot :

GinnyAnsweridn
Jade wants to buy a [tex]$200,000$[/tex] term life insurance policy. She is 34 years old. According to the premium table, we need to determine the annual premium for a 10-year policy.

1. First, locate the appropriate values in the table. We see that for a 34-year-old female purchasing a 10-year term policy, the annual premium rate per [tex]$1000 of face value is $[/tex]6.01.

2. Jade's desired coverage is for [tex]$200,000. We need to calculate the premium for this amount. To do this, we use the given rate per $[/tex]1000 of insurance.

3. Split the [tex]$200,000 into units of $[/tex]1000:
[tex]\[ 200,000 \div 1,000 = 200 \][/tex]
This means Jade is buying 200 units of [tex]$1000 each. 4. Multiply the number of units (200) by the premium rate per unit ($[/tex]6.01):
[tex]\[ 200 \times 6.01 = 1202.00 \][/tex]

Therefore, the annual premium for Jade’s [tex]$200,000 term life insurance policy is $[/tex]1,202.

So, the correct answer is:
b. $1,202
Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. Your questions find clarity at IDNLearn.com. Thanks for stopping by, and come back for more dependable solutions.