To find how much more Bernard will pay annually due to his health issues, follow these steps:
1. Determine the number of [tex]$5,000 face value units for the $[/tex]115,000 term insurance:
[tex]\[
\text{Number of units} = \frac{115,000}{5,000} = 23
\][/tex]
2. Calculate the annual premium for a healthy 35-year-old male:
[tex]\[
\text{Annual premium (no health issues)} = \text{Number of units} \times \text{Rate per unit}
\][/tex]
Given the rate per unit for a 35-year-old male is [tex]$1.40:
\[
\text{Annual premium (no health issues)} = 23 \times 1.40 = 32.20
\]
3. Calculate the additional cost due to health issues (15% more):
\[
\text{Additional cost percentage} = 0.15
\]
\[
\text{Additional annual cost} = \text{Annual premium (no health issues)} \times \text{Additional cost percentage} = 32.20 \times 0.15 = 4.83
\]
So, the additional cost Bernard has to pay annually due to his health issues is approximately $[/tex]\[tex]$4.83$[/tex].
From the choices provided, the closest amount is [tex]\( \$185 \)[/tex], though it’s evident there might be an error in rounding or reporting the choices. Should you refer to the exact computation, it would indeed be [tex]$\$[/tex]4.83$.
