Question

Use the table to find the yearly premiums in each of the following cases.

George Anderson takes out $30,000 of a twenty-payment life insurance.
If he is thirty-six years old, what annual premium does he pay?

Answer 1

The annual premium paid by George Anderson is $846.90.

Explanation:

It is given that George Anderson takes out $30,000 of a twenty-payment life insurance.

The age of George Anderson is 36.

In the given table the first column represents the age and 4th column represents the twenty-payment life insurance.

From the given table it is noticed that the annual premium for males, whose age is 36, is 28.23 per $1000.

`$1000=28.23\text{ Annual premium}`

Multiply both sides by 30.

`$1000* 30=28.23* 30\text{ Annual premium}`

`$30,000=846.9\text{ Annual premium}`

Therefore the annual premium paid by George Anderson is $846.90.

Answer 2

Annual premium = 30 * 28.23 = $846.90