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)?

$662.30

$644.00

$322.00

$585.32

Answer 1

Hi there
number of thousands on 25000
25000/1000=25
life insurance
25×2.9
=72.5
straight life
25×15.78
=394.5
How much less
394.5−72.5
=322...answer

Hope it helps

Answer 2

Answer: Third Option is correct.

Explanation:

Since we have given that

Amount for policy = $25000

If she opt for 20 year life insurance @ $2.90 per $1000.

so, her amount of premium becomes

`25000* (2.9)/(1000)\\\\=\$72.50`

If she opt for straight life insurance @ $15.78 per $1000,

Then, her amount of premium becomes

`25000* (15.78)/(1000)\\\\=\$394.50`

Difference between them is given by

`\$394.50-\$72.5=\$322.00`

Hence, Third Option is correct.