Question

A life insurance policy costs $7.32 for every $1,000 of insurance. At this rate, what is the cost for $22,500 worth of life insurance?

Answer 1

Answer:

$22,500 worth of insurance would cost $164.70.

Step-by-step explanation:

Write and solve an equation of ratios:

$7.32       $1000

----------- = ---------------

     x          $22,500

Cross multiplying here yields:

1000x = 164700

Dividing both sides by 1000 yields:

x = 164700/1000 = $164.70

$22,500 worth of insurance would cost $164.70.