Question

Taylor Breen took out a $100,000, 5-year term policy at age 48. The premium per $1,000 was $4.70. He will be 53 years old next year when the premium per $1,000 will be $6.40. What is the amount of the increase?
Select one:
a. $133
b. $136
c. $173
d. $170

Answer 1

The premium per $1000 was $4.70
so, premium per $100,000 was $470

next year premium per $1000 will be $6.40
so, premium per $100,000 will be $640

so, amount of increase is $640 - $470 = $170 .........[Answer (C)]