To determine how much Joe and Melinda can expect to pay in premiums the first year, we need to calculate the annual premiums for each of them based on their ages, the term policies they want, and the policy amount of \[tex]$300,000 each.
1. Joe's Premium Calculation:
- Joe's age: 32
- Policy term: 15 years
- Policy amount: \$[/tex]300,000
- Annual premium per \[tex]$1000 of face value for Joe (age 32, 15-year term): \$[/tex]3.32
To calculate Joe's annual premium:
[tex]\[
\text{Joe's premium} = \left( \frac{\$300,000}{\$1000} \right) \times \$3.32
\][/tex]
[tex]\[
\text{Joe's premium} = 300 \times \$3.32 = \$996.00
\][/tex]
2. Melinda's Premium Calculation:
- Melinda's age: 29
- Policy term: 20 years
- Policy amount: \[tex]$300,000
- Annual premium per \$[/tex]1000 of face value for Melinda (age 29, 20-year term): \[tex]$4.96
To calculate Melinda's annual premium:
\[
\text{Melinda's premium} = \left( \frac{\$[/tex]300,000}{\[tex]$1000} \right) \times \$[/tex]4.96
\]
[tex]\[
\text{Melinda's premium} = 300 \times \$4.96 = \$1488.00
\][/tex]
3. Total Premium Calculation:
To find the total premium for Joe and Melinda:
[tex]\[
\text{Total premium} = \text{Joe's premium} + \text{Melinda's premium}
\][/tex]
[tex]\[
\text{Total premium} = \$996.00 + \$1488.00 = \$2484.00
\][/tex]
From these calculations, the total amount Joe and Melinda can expect to pay in premiums the first year is [tex]\(\$2484\)[/tex].
Therefore, the best answer from the choices provided is:
b. [tex]\(\$2,484\)[/tex]
