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Scorpion4ik [409]
3 years ago
13

Andrea and Phillip have been married for two years when they walk into the local State Farm agent's office. They see a banner (w

ith lots of fine print at the bottom) advertising a new life insurance policy for only $0.98 per thousand. Upon reading the fine print, they discover that the value of this policy is $350,000. If they qualified for this special life insurance promotion, what would their annual premium cost?
Business
1 answer:
Amanda [17]3 years ago
5 0

Answer:

$343

Explanation:

Andrea and Phillip's annual premium cost can be calculated using the cost per thousand formula:

cost per thousand = annual premium / thousands of coverage

  • cost per thousand = $0.98
  • thousands of coverage = $350,000 / $1,000 = 350

$0.98 = annual premium / 350

annual premium = $0.98 x 350 = $343

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