Question

How much less would a 23 year old female pay for a $25,000 policy of 20 year life insurance (@ $2.90 per $1000) than straight life (@ $15.78 per $1000)?

A. $662.30
B. $644.00
C. $322.00
D. $585.32

Answer 1

C

Explanation:

2.90x25 = 72.50 15.78x25 = 394.50 subtract 72.50 from 394.50 which equals C

Answer 2

Answer: She would pay $322 less. (option C)

Explanation:

Hi, to solve this problem we have to analyze the information given:

• Number of thousands in $25,000 = 25 ( $25,000 / 1000 = 25)

• Life insurance policy :( $2.90 per $1000) = $2.90 x 25 = $72.5

• Straight life policy : ($15.78 per $1000)= $15.78 x25 = $394.5

Now, that we have the total costs we have to subtract the cost of the first policy ($72.5) to the second policy cost ($394.5)

Mathematically speaking:

$394.5- $72.5 = $322

She would pay $322 less. (option C)