Question

How much less would a 23-year-old female pay for a $25,000 policy of 20 year life insurance (@ $2.90 per $1000) than straight life (@ $15.78 per $1000)?

Answer 1

The answer to this question is $322.

Explanation:

From the question, we recall the following

23-year-old female pay for a $25,000 policy less policy of 20 year life insurance.

The first step is to calculate the policy of 20 year life insurance

The number of thousands on 2500 is, 25000/1000=25

25*2.9 = 72.5

The next step is to get the straight life

Thus,

25×15.78 = 394.5

Now,

How much less would the 23 year old pay

394.5−72.5 = $322

Answer 2

The female would pay $322.00 less for a policy of $25,000

Explanation:

Since we have given that

Amount for policy = $25000

If she opt for 20 year life insurance at $2.90 per $1000.

so, her amount of premium becomes

`25000* (2.9)/(1000)`

=$72.50

If she opt for straight life insurance at $15.78 per $1000,

Then, her amount of premium becomes

`25000 * (15.78)/(1000)`

= $394.50

Difference between them is given by

$394.50-$72.5 = $322.00