Question

Eddie, 37 year old male, bought a $70,000, 20 year life insurance policy through his employer. Eddie is paid biweekly. How much is deducted from each of his paychecks for life insurance? use the table

(a) 21.35
(b) 23.13
(c) 27.81
(d) 30.13

Answer 1

27.81

Explanation:

Answer 2

(c) 27.81

Explanation:

We have been given a table that represents the amount of annual premium of ABC term life insurance company.

Since Eddie is 37 year old male and he bought a 20 year life insurance life policy, so the annual premium charged per $1000 of coverage will be $10.33.

Let us find the total annual premium by multiplying $10.33 by 70 as he bought a $70,000 policy.

`\text{The annual premium paid by Eddie}=\$10.33* 70`

`\text{The annual premium paid by Eddie}=\$323.18`

Since biweekly means 26 times per year, so we will divide the annual premium by 26 to find the amount deducted from each of his paychecks.

`\text{The amount deducted from each of Eddie's paychecks for life insurance}=(\$323.18)/(26)`

`\text{The amount deducted from each of Eddie's paychecks for life insurance}=\$27.81461538\approx \$27.81`

Therefore, am amount of $27.81 is deducted from each of his paychecks for life insurance and option c is the correct choice.