Let's break down the problem step-by-step to find out how much more Bernard will pay for life insurance annually due to his health issues.
1. Determine the annual premium for a male of age 35 without health issues:
- The insurance amount is [tex]\( \$115,000 \)[/tex].
- The annual insurance premium per [tex]\( \$1,000 \)[/tex] of face value for a 10-year term policy at age 35 (for males) is [tex]\( \$1.40 \)[/tex].
First we need to calculate the total annual premium for a male without health issues:
[tex]\[
\text{Annual premium without health issues} = \left( \frac{\$115,000}{\$1,000} \right) \times \$1.40
\][/tex]
Simplifying this:
[tex]\[
\text{Annual premium without health issues} = 115 \times 1.40 = \$161.00
\][/tex]
2. Calculate how much more Bernard will pay due to his health issues:
- Bernard has health issues which increase his premium by [tex]\( 15\% \)[/tex].
To find the additional amount that Bernard has to pay, we need 15% of the annual premium calculated above:
[tex]\[
\text{Additional due to health issues} = \$161.00 \times 0.15
\][/tex]
Simplifying this:
[tex]\[
\text{Additional due to health issues} = \$24.15
\][/tex]
So, Bernard has to pay [tex]\( \$24.15 \)[/tex] more annually because of his health issues.
Of the given choices:
a. \[tex]$161
b. \$[/tex]185
c. \[tex]$1,073
d. \$[/tex]24
The closest answer here is:
[tex]\[
\boxed{24}
\][/tex]
