Answer:
$863
Explanation:
Given: Carla Arslanian is 55 years old. She wants to purchase a $100,000, 10-year term life insurance policy.
To find: What is her annual premium?
Solution: Insurance companies use mathematical calculation and statistics to calculate the number of insurance premiums they charge their clients.
Annual premium = face value x rate $100
Annual premium (for building) = $100,000 ÷ $1000 x 10 = $1000.
The sum of the annual premium is $863.