Question

A term life policy was offered to your spouse for $3.49 per $1,000.00. You want him to have $100,000.00 coverage, what is the premium per year?

Answer 1

The premium is $349 per year

Explanation:

We can easily solve this problem by applying a rule of three

$3.49 ---------------------------------------- $1000 coverage

x ---------------------------------------- $100,000 coverage

By using this relation, we can find how much money is needed to pay

x = ($100,000/$1000)*$3.49

x = (100)*$3.49

x = $349

The premium is $349 per year