Question

The premium on a life insurance policy is $96.80 per annum. If the rate is

$19.36 per thousand each year the value of the policy is

Answer 1

96.80 + 19.36 = 116.16

Explanation:

Answer 2

$5,000

Explanation:

cost per year = (cost per thousand per year)×(thousands)

96.80 = 19.36×(thousands) . . . . . . fill in the given information

96.80/19.36 = (thousands) = 5

The value of the policy is $5,000.