To determine the annual premium that George Anderson will need to pay for his twenty-payment life insurance with a face value of [tex]$30,000 at the age of 36, we can use the information provided in the given table.
Step-by-Step Solution:
1. Identify the relevant information from the table:
From the table, we look for the annual premium per $[/tex]1,000 of face value for a 36-year-old male under the "20-Payment Life" column. The value listed is [tex]$28.23.
2. Determine the face value of the policy:
George has taken out a life insurance policy with a face value of $[/tex]30,000.
3. Calculate the total annual premium:
The annual premium rate given in the table is per [tex]$1,000 of face value. Therefore, we need to scale this rate according to George's policy face value.
- We divide the face value by $[/tex]1,000 to find the number of [tex]$1,000 units in the policy:
\[
\frac{30,000}{1,000} = 30
\]
- Next, we multiply the number of $[/tex]1,000 units by the annual premium rate per [tex]$1,000 from the table:
\[
30 \times 28.23 = 846.90
\]
Thus, the correct annual premium that George Anderson must pay for his twenty-payment life insurance is \$[/tex]846.90.
