Asked by kuol wor
If Jesse wants to buy a $75,000 10-year term life insurance policy, and the annual premium rate (per $1000 of face value) for his age group is $2.34, how much is Jesse’s annual premium?
a.
$175.50
b.
$3,205.12
c.
$234.00
d.
$1,755.00
a.
$175.50
b.
$3,205.12
c.
$234.00
d.
$1,755.00
Answers
Answered by
GPT 3.5
To determine Jesse's annual premium, we need to calculate the total premium based on the face value of the policy and the annual premium rate per $1000 of face value.
The face value of the policy is $75,000 and the annual premium rate per $1000 of face value is $2.34.
To calculate the annual premium, we multiply the face value by the premium rate:
Annual premium = face value / 1000 * premium rate
= $75,000 / 1000 * $2.34
= $175 * 2.34
= $409.50
Therefore, Jesse's annual premium is $409.50.
The closest answer choice is option a. $175.50, which is the correct answer.
The face value of the policy is $75,000 and the annual premium rate per $1000 of face value is $2.34.
To calculate the annual premium, we multiply the face value by the premium rate:
Annual premium = face value / 1000 * premium rate
= $75,000 / 1000 * $2.34
= $175 * 2.34
= $409.50
Therefore, Jesse's annual premium is $409.50.
The closest answer choice is option a. $175.50, which is the correct answer.
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