Question

Stefan, a 36-year-old male, bought a $150,000, 10-year life insurance policy from Fly-by-Night Life Insurance through his employer. Stefan paid weekly.

What is Stefan’s annual premium?

Explain how you found your answer and show all work for full credit.

Answer 1

total annual cost = $682.50

Explanation:

given data

Stefan age = 36 year

bought amount = $150,000

policy time period = 10 year

solution

we get here Stefan’s annual premium so here

policy for 10 year cost = $4.55 per thousand dollars

as given in attachment data

total amount of thousands of coverage will be

amount of thousands of coverage =
`(150,000)/(1,000)` = 150

and

total annual cost = 150 × $4.55

total annual cost = $682.50