Answer:
1) Option B- $728
2) Kara's annual premium is $62.5.
Step-by-step explanation:
1) Given : Daniel, a 37-year-old male, bought a $160,000, 10-year life insurance policy.
To find : What is Daniel's annual premium?
Solution :
In the table given,
Annual premium is per $1000 of coverage.
Daniel's life insurance policy buy is $160,000
Annual premium per $1000 coverage Daniel buy at $160
37 year old male 10 year cost is $4.55
(marked in the attached table below)
Daniel's annual premium is [tex]4.55\times 160[/tex]
[tex]=\frac{455}{100}\times 160[/tex]
[tex]=728[/tex]
Daniel's annual premium is $728
Therefore, Option B is correct.
2) Given : Kara, a 25-year-old female, bought a $50,000, 10-year life insurance policy through her employer. Kara is paid semimonthly.
To find : How much is deducted from each of her paychecks for life insurance?
Solution :
In the table given,
Annual premium is per $1000 of coverage.
Kara's life insurance policy buy is $50,000
Annual premium per $1000 coverage Kara buy at $50
25 year old female 10 year cost is $2.50
(marked in the attached table below)
Kara is paid semimonthly
So, cost is[tex]\frac{2.50}{2}=1.25[/tex]
Kara's annual premium is [tex]1.25\times 50[/tex]
[tex]=\frac{1.25}{100}\times 50[/tex]
[tex]=62.5[/tex]
Kara's annual premium is $62.5.
