Question

3. Viola and Al Quillen are both 25-years old. Both want to purchase$250,000, whole life insurance policies. What is Al's annualpremium? What is Viola's?

Answer 1

Given:

Viola and Al Quillen are both 25-years old. Both want to purchase $250,000, whole life insurance policies.

Required:

To find the annual premium of Viola and Al Quillen.

Step-by-step explanation:

Annual premium per $ 1000 of life insurance for female is 7.50

Now Voila want to purchase $250,000, whole life insurance policies.

So the premium will be

`\begin{gathered} =(7.50)/(1000)*250000 \\ \\ =7.5*250 \\ \\ =1875 \end{gathered}`

The annual premium for Viola is $1875.

Now Al Quillen want to purchase $250,000, whole life insurance policies.

So the premium will be

`\begin{gathered} =(9.5)/(1000)*250000 \\ \\ =9.5*250 \\ \\ =2375 \end{gathered}`

The annual premium for Al Quillen is $2375.

Final Answer:

The annual premium for Viola is $1875.

The annual premium for Al Quillen is $2375.