Answer:
$84
Explanation:
Since Chloe wants a policy for $100,000, she will pay $100,000/$25,000 = 4 times the amount shown in the table. The table amounts are for monthly premiums, so the annual amount will be 12 times that. In all, Chloe will pay annually an amount that is 4·12 = 48 times the amount in the table.
As a female smoker, she will pay annually for a $100,000 policy ...
48 · $5.25 = $252.00
If Chloe were a non-smoker, she would pay annually ...
48 · $3.50 = $168.00
If the insurance company considers a smoker who quits to be a non-smoker, then by quitting, Chloe could save ...
$252 -168 = $84 . . . annually
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Alternate means to the end
Of course, it is easier to multiply the difference in rates by 48:
48·($5.25 -3.50) = 48·$1.75 = $84 . . . . annual savings