Question

If Jesse wants to buy a $75,000 10-year term life insurance policy, and the annual premium rate (per $1000 of face value) for his age group is $2.34, how much is Jesse’s annual premium?

Answer 1

Step-by-step explanation:

Since it is given that it costs $2.34 for every $1000 face value, and it was given that he wanted to buy a $75000 plan, multiplying $2.34 by 75 (75000 includes 75 $1000 face value), it should yield us the annual premium.  

2.34 * 75 = $175.50

We don't need to multiply it by 10 years as only the annual premium is being solved for.