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The following table gives annual life insurance premiums per [tex]$\$1,000$[/tex] of face value. Use the table to determine the annual premium for a [tex]$\[tex]$110,000$[/tex][/tex] 5-year term policy for a 22-year-old female. Round your answer to the nearest cent.

\begin{tabular}{|c|c|c|c|c|}
\hline
\multirow{3}{*}{ Age } & \multicolumn{4}{|c|}{ Term Insurance } \\
\cline { 2 - 5 }
& 5-Year Term & \multicolumn{2}{c|}{10-Year Term } \\
\cline { 2 - 5 }
& Male & Female & Male & Female \\
\hline
20 & [tex]$\$[/tex] 2.43[tex]$ & $[/tex]\[tex]$ 2.07$[/tex] & [tex]$\$[/tex] 4.49[tex]$ & $[/tex]\[tex]$ 4.20$[/tex] \\
\hline
21 & [tex]$\$[/tex] 2.49[tex]$ & $[/tex]\[tex]$ 2.15$[/tex] & [tex]$\$[/tex] 4.57[tex]$ & $[/tex]\[tex]$ 4.29$[/tex] \\
\hline
22 & [tex]$\$[/tex] 2.55[tex]$ & $[/tex]\[tex]$ 2.22$[/tex] & [tex]$\$[/tex] 4.64[tex]$ & $[/tex]\[tex]$ 4.36$[/tex] \\
\hline
23 & [tex]$\$[/tex] 2.62[tex]$ & $[/tex]\[tex]$ 2.30$[/tex] & [tex]$\$[/tex] 4.70[tex]$ & $[/tex]\[tex]$ 4.42$[/tex] \\
\hline
24 & [tex]$\$[/tex] 2.69[tex]$ & $[/tex]\[tex]$ 2.37$[/tex] & [tex]$\$[/tex] 4.79[tex]$ & $[/tex]\[tex]$ 4.47$[/tex] \\
\hline
25 & [tex]$\$[/tex] 2.77[tex]$ & $[/tex]\[tex]$ 2.45$[/tex] & [tex]$\$[/tex] 4.85[tex]$ & $[/tex]\[tex]$ 4.51$[/tex] \\
\hline
\end{tabular}

a. [tex]$\$280.50$[/tex]
b. [tex]$\[tex]$244.20$[/tex][/tex]
c. [tex]$\$253.00$[/tex]
d. [tex]$\[tex]$236.50$[/tex][/tex]

Please select the best answer from the choices provided.

Sagot :

GinnyAnswer
To determine the annual premium for a \[tex]$110,000 5-year term policy for a 22-year-old female using the provided table, we will follow these steps: 1. Identify the annual premium per \$[/tex]1,000 of face value:
According to the table, the annual premium for a 22-year-old female for a 5-year term policy is \[tex]$2.22 per \$[/tex]1,000 of face value.

2. Determine the face value of the policy in thousands:
The face value of the policy is \[tex]$110,000. To convert this to thousands, we divide by 1,000: \[ \frac{110,000}{1,000} = 110 \] Therefore, the face value in thousands is 110. 3. Calculate the total annual premium: Multiply the annual premium per \$[/tex]1,000 by the face value in thousands:
[tex]\[ 2.22 \times 110 = 244.20 \][/tex]

4. Round the result to the nearest cent:
The calculated premium, \[tex]$244.20, is already rounded to the nearest cent. Thus, we need not make further adjustments. So, the annual premium for a \$[/tex]110,000 5-year term policy for a 22-year-old female is \[tex]$244.20. Comparing the calculated result with the options provided: - a. \$[/tex]280.50
- b. \[tex]$244.20 - c. \$[/tex]253.00
- d. \[tex]$236.50 The best choice is b. \$[/tex]244.20.
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