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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]\$ 95,000[/tex] 5-year term policy for a 21-year-old male. Round your answer to the nearest cent.

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

A. \[tex]$410.28
B. \$[/tex]205.62

Sagot :

GinnyAnswer
To determine the annual premium for a [tex]$95,636, 5-year term policy for a 21-year-old male, we can follow these steps: 1. Identify the annual premium per $[/tex]1,000 of face value for a 21-year-old male. According to the table, the premium is [tex]$2.49 per $[/tex]1,000.

2. Determine the face value of the insurance policy, which is [tex]$95,636. 3. Calculate the total premium by using the formula: \[ \text{Total Premium} = \left( \frac{\text{Face Value}}{1000} \right) * \text{Premium per $[/tex]1,000}
\]

4. Apply the values to the formula:
[tex]\[ \text{Total Premium} = \left( \frac{95636}{1000} \right) * 2.49 \][/tex]

5. Calculate the quotient:
[tex]\[ \frac{95636}{1000} = 95.636 \][/tex]

6. Multiply the quotient by the premium per [tex]$1,000: \[ 95.636 * 2.49 = 238.13364 \] 7. Round the result to the nearest cent: \[ 238.13364 \approx 238.13 \] Therefore, the annual premium for a $[/tex]95,636, 5-year term policy for a 21-year-old male is $238.13.
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