Sarah, age 29, makes $45,000 a year and wants to buy a 15-year term policy that would replace seven years of her salary. The annual premium rate (per $1000 of face value) for her age group is $1.46. What is Sarah's premium, to the nearest dollar? a. $460 b. $215 c. $66 d. $986

Question

Mathematics

Jameson Herring

5 February, 15:27

Sarah, age 29, makes $45,000 a year and wants to buy a 15-year term policy that would replace seven years of her salary. The annual premium rate (per $1000 of face value) for her age group is $1.46. What is Sarah's premium, to the nearest dollar? a. $460 b. $215 c. $66 d. $986

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Shayna Hopkins · Answer 1

Take Sarah's salary $45,000 X 7 (because she wants it to be 7 years salary) = $315,000.

Take the policy value $315,000 : $1,000 (per $1000 face value) = $315

Now take $315 X $1.46 = $459.90 and round it to the nearest dollar is $460.

Sarah's premium is a. $460.