Question

The Acorn Insurance Company charges $3.50 for each unit of coverage under a block of 1-year term life insurance policies. The annual premium amount for a $50,000 policy in this block would be equal to ____.

Answer 1

$175

Step-by-step explanation:

Insurance premium is expressed as a rate $1000

($3.50 per $1000)

Therefore;

Annual premium= $50000x$3.50/$1000

= $175