Question

Jane Doe determines she can afford a maximum of $100 per month for life insurance. If she finds a policy with yearly premiums of $5.00 per unit ($1,000), what maximum amount of insurance can Jane afford to buy?

$500,000


$120,000


$240,000


$50,000

Answer 1

Your answer would be $500,000

Explanation:

You have to multiply $100 and $5.00 which equals $500 then multiply $1,000 and $500 which equals $500,000 because you have to add a 0 when you get your answer and that will make $500,000