To calculate Thomas Trotte's annual premium for a $50,000, 5-year term life insurance policy with a premium rate of $5.80 per $1,000, follow these steps:
1. First, calculate the total cost of the policy:
Total Cost = Face Value / 1,000 x Premium Rate
Total Cost = ($50,000 / $1,000) x $5.80 = 50 x $5.80 = $290.00
2. Now, to find the annual premium, divide the total cost by the number of years (5 years, in this case):
Annual Premium = Total Cost / Number of Years
Annual Premium = $290.00 / 5 = $58.00
Thomas Trotte's annual premium for the $50,000, 5-year term life insurance policy is $58.00.
Hope this helps! :)