The face value of the policy is $500,000 so that's 500*$1000 = $<<500*1000=500000>>500,000
Over the 15 year term, that premium rate comes to 6.78*500 = $<<6.78*500=3390>>3,390 a year
So over the course of 15 years he will have paid 15*3390 = $<<15*3390=50850>>50,850. Answer: \boxed{c}.
Jacob wants to buy a $500,000 15-year term life policy, and the annual premium rate (per $1000 of face value) for his age group is $6.78. If Jacob lives until the end of the term of his policy, how much will Jacob have paid in premiums overall?
a.
$101,700
b.
$3,390
c.
$50,850
d.
$73,746
1 answer
1 answer