Question

Wendy, a 32 year old female, bought a $130,000, 10-year life insurance policy. what is wendys annual premium? Use the table

Answer 1

It would be A, because her annual premium rate is $3.25 for every $1,000. So 3.25x130=$422.50

Answer 2

Option A- $422.5

Explanation:

Given : Wendy, a 32 year old female, bought a $130,000, 10-year life insurance policy.

To find : What is Wendy annual premium?

Solution :

In the table given,

Annual premium is per $1000 of coverage.

Wendy life insurance policy buy is $130,000

Annual premium per $1000 coverage Wendy buy at $130

From the table, (marked in the attached table below)

32 year old female 10 year cost is $3.25

Wendy's annual premium is
`3.25* 130`

`=(325)/(100)* 130`

`=422.5`

Wendy's annual premium is $422.5

Therefore, Option A is correct.