To determine Gerald's insurance premium based on the information provided, we need to first establish how many units of coverage he wants. Since the table illustrates premiums for every $25,000 of coverage, we can divide his desired coverage amount by $25,000.
Gerald wants $75,000 in coverage: \[ \frac{75,000}{25,000} = 3 \]
This means he will need to pay for 3 units of $25,000 coverage.
Next, we need to look up the premium rate for a 45-year-old smoker for one unit of coverage. Since we don't have the premium rate from your question, let's assume the options provided represent total premiums for the three units.
Let's figure out what the monthly premium might be based on the provided answer options. If we test each answer option to see if it could reasonably be the monthly premium for 3 units, we'll divide the premium by 3 (the number of units).
- For $13.00: \(\frac{13.00}{3} \approx 4.33\)
- For $22.50: \(\frac{22.50}{3} = 7.50\)
- For $39.00: \(\frac{39.00}{3} = 13.00\)
- For $52.00: \(\frac{52.00}{3} \approx 17.33\)
Given that the premiums available as options are cumulative and we are looking for the total premium for three units, we can deduce that:
Since it is common for premiums to increase based on factors like smoking and age, it is likely that a higher premium is correct.
If we consider the possible answers in the context of being realistic for insurance for a 45-year-old smoker, the most reasonable assumption would be:
- The monthly premium for 3 units of $25,000 coverage would be $52.00.
Thus, Gerald's insurance premium is likely $52.00.