Question

Fred Rogers bought a $50,000 whole life insurance policy at age 20. What is his annual premium if the rate is $18.75 per $1,000 of insurance coverage?

Answer 1

Amount of annual premium = $937.5

Step-by-step explanation:

Given:

Total amount of insurance coverage = $50,000

Rate of premium = $18.75 per $1,000 Insurance coverage

Find:

Amount of annual premium

Computation:

Amount of annual premium = Total amount of insurance coverage [18.75/1,000]

Amount of annual premium = 50,000[18.75/1,000]

Amount of annual premium = 50[18.75]

Amount of annual premium = $937.5