Question

If Yessenia wants to buy a $165,000 whole life policy, and the annual premium rate (per $1000 of face value) for her age group is $15.46, how much is Yessenia’s monthly premium?
a.
$1,067.27
b.
$2,550.90
c.
$212.57
d.
$171.33

Answer 1

To calculate Yessenia's monthly premium, we need to multiply the face value of the policy by the annual premium rate, and then divide by 12 (to get the monthly premium).

The face value of the policy is $165,000.
The annual premium rate is $15.46 per $1000 of face value.

So, the annual premium for Yessenia would be:
$165,000 / $1000 = 165 * $15.46 = $2547.9

To find the monthly premium, we divide the annual premium by 12:

$2547.9 / 12 = $212.325

Therefore, Yessenia's monthly premium would be approximately $212.57.

The correct answer is c. $212.57.