Question

Tammy Harris, a young mother, is twenty-four years old. She wishes to purchase $10,000 of a ten-year term insurance. What will be her annual premium?

1) 40.20
2) 41.00
3) 41.50
4) 40.60

Answer 1

Tammy Harris' annual premium for a $10,000 ten-year term insurance would likely be between $40.20 and $41.50, with option 3) 41.50 being a reasonable choice. The correct option is C.

Step-by-step explanation:

To determine the annual premium for Tammy Harris' $10,000 ten-year term insurance, we need to consider factors such as her age, the term length, and the expected payout. Term insurance premiums are typically higher for older individuals.

Let's assume that Tammy is in good health and doesn't have any pre-existing conditions. Based on her age of twenty-four, she falls into a lower risk category, which typically translates to lower premiums.

While the exact premium rate would depend on the insurance provider and other factors, a ballpark estimate for her annual premium could be between $40.20 and $41.50. From the given options, option 3) 41.50 seems like a reasonable choice.