Sarah's salary for seven years is $45,000 * 7 = $<<45000*7=315000>>315,000.
The face value of Sarah's policy is $315,000 / 1000 = <<315000/1000=315>>315.
So, her premium will be $315 * 1.46 = $<<315*1.46=459.9>>459.9.
Rounding this to the nearest dollar gives a premium of $<<460=460>>460.
Therefore, Sarah’s premium is answer choice a. $460. Answer: \boxed{a}.
Sarah, age 29, makes $45,000 a year and wants to buy a 15-year term policy that would replace seven years of her salary. The annual premium rate (per $1000 of face value) for her age group is $1.46. What is Sarah’s premium, to the nearest dollar?
a.
$460
b.
$215
c.
$66
d.
$986
1 answer
1 answer