Question

An insurance salesman uses the graph below to determine life insurance costs.

Life Insurance Rates
Monthly Cost per
$10,000 of Insurance
$80
$70
$60
$50
$40
$30
$20
$10
The y-axis shows the monthly cost for every $10,000 of insurance purchased. Which is closest to the monthly cost for $100,000 of life insurance for a
person who is 30 years of age?
O $15
$30
$150
20
30
40
50
Age of Insured Person (years)
$300

Answer 1

Based on the given information, the monthly cost for every $10,000 of insurance purchased decreases as the age of the insured person increases. Therefore, we can assume that the cost for $100,000 of life insurance for a person who is 30 years old would be close to the lowest cost per $10,000 value, which is $10.

To calculate the monthly cost for $100,000 of life insurance, we need to divide the insurance amount by $10,000 and then multiply it by the cost per $10,000:

$100,000 / $10,000 = 10

$10 * $10 = $100

Therefore, the closest monthly cost for $100,000 of life insurance for a person who is 30 years old is $100.

Explanation: