Question

When Margaret Thomas was 35 years old, she purchased a ten-year term life insurance policy with a face amount of $150,000. Now she is 45 years old and wants to renew

the policy. How much more will her annual premiums be now than they were before the renewal? Rates per thousand for females: age 35 = $6.17, age 45 = $8.63

Answer 1

First we are going to calculate how much she paid for the $150000 when she was 35 years old

`(150000)/(1000)\cdot6.17=150\cdot6.17=925.5`

Now we calculate how much she is going to pay now that she is 45

`(150000)/(1000)\cdot8.63=150\cdot8.63=\text{ 1294}.5`

Then she will pay 1294.5-925.5=369 dollars more