Final answer:
Drake will pay a total of $27,195 for his $110,000 life insurance policy over the 20-year term, which is option 3.
Step-by-step explanation:
The question asks us to calculate the total amount Drake will pay for a 20-year term life insurance policy. To find the total cost of the premium over 20 years, we multiply the annual premium by the number of years in the term.
Therefore, we can calculate Drake's total payment as follows:
- Annual Premium: $12.95 per month
- Months in a Year: 12
- Years in the Term: 20
- Total Premium over 20 years = $12.95 × 12 months/year × 20 years
When we perform the multiplication, we find that
Total Premium over 20 years = $12.95 × 12 × 20 = $3,108 per year × 20 years = $27,195
Thus, the total amount that Drake will pay over the 20 years for the premium is $27,195, which corresponds to option 3.