Question

James Harmon is twenty-five when he takes out $40,000 of twenty-payment life insurance. How much is his annual premium? Annual premium = $ If he were to pay semi-annual premiums, what would the premium be? Semi-annual premium = $ If he were to pay quarterly premiums, what would the premium be? Quarterly premium = $ If he were to pay monthly premiums, what would the premium be? Monthly premium = $

Answer 1

Answer:

Annual premium = $ 850.80

Semi - Annual premium = $ 433.91

Quarterly premium = $ 221.21

Monthly premium = $ 76.57

Step-by-step explanation:

• Annual premium is 21.27 times per $1000

⇒ Annual premium = 21.27 × 40 = $ 850.80

• Semi annual premium is 51% of annual premium

⇒ Semi annual premium = 0.51 × 850.80 ≈ $ 433.91

• Quarterly annual premium is 26% of annual premium

⇒ Quarterly annual premium = 0.26 × 850.80 ≈ $ 221.21

• Monthly annual premium is 9% of annual premium

⇒ Monthly annual premium = 0.09 × 850.80 ≈ $ 76.57

Answer 2

21.27*40= Annual premium is 850.8 51% of 850.8 is 433.9 ---> semi annual his quarterly is 26% of 850.8 so 221.2 and finally his monthly premium is 9 percent of 850.8 so it's 76.57