Question

Colin Edwards has a $60,000 term life policy. The annual premium is $1,060. Colin pays $96.28 monthly.

How much does Colin pay in twelve months? $
How much more does Colin pay? $
What percentage does Colin pay (to the nearest percent)?

Answer 1

a) 1,155.36

b) 95.36

c) 9%

Explanation:

a) 96.28 × 12 = 1,155.36

b) 1,155.36 - 1,060.00 = 95.36

c) 95.36 ÷ 1,060.00 = 0.089 which is 9%

Answer 2

a) Colin pays $1155.36 in 12 months.

b) Colin pays $ 95.36 more than the actual amount.

c) Colin approximately pays 109% amount.

Explanation:

The annual premium = $1060

Amount paid monthly = $96.28

So, the total amount paid in 12 months = 12 x $96.28 =$1155.36

So, Colin pays $1155.36 in 12 months.

Now, Difference in the amount = Total amount actually paid - The annual premium

= $1155.36 - $1060 = $ 95.36

So, Colin pays $ 95.36 more than the actual amount.

Now to find the percentage of amount paid =
`\frac{\textrm{The amount paid}}{\textrm{The original premium}} * 100`

=
`(1155.36)/(1060)  * 100 = 108.9`%

So, Colin approximately pays 109% amount.