Question

The equation y=8.50x + 33 can be used to estimate the monthly premium y of a $250,000 term life insurance policy for a male smoker who is more than 40 year old. In this equation, x is the age of a man above 40. For example, a 60 year old male smoker, x =20. Estimate the monthly insurance premium for a 48-year old male smoker. (Show all work)

Answer 1

$101

Explanation:

Given

`y = 8.50x + 33`

`x \to` age above 40

Required

Insurance for 48 years old

First, we solve for x

`x = 48 - 40`

`x = 8`

So, we have:

`y = 8.50x + 33`

`y = 8.50 * 8 + 33`

`y = 68 + 33`

`y = 101`