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4 years ago

Annual insurance is 1,000 face value.

Mathematics

2 answers:

satela [25.4K]4 years ago

8 0

Answer:

The correct answer is A.

Step-by-step explanation:

Premium for Company A :

face value = 1.86 , charges are 20% more for smokers

⇒ Charges = 20% of 250000 = $50000

Total charge = Charge × face value

= 50000 × 1.86 = $93000

Premium for Company B :

face value = 1.86 , charges are 18% more for smokers

⇒ Charges = 18% of 250000 = $45000

Total charge = Charge × face value

= 45000 × 1.86 = $83700

Premium for Company C :

face value = 2.07 , charges are 25% more for smokers

⇒ Charges = 25% of 250000 = $62500

Total charge = Charge × face value

= 62500 × 2.07 = $129375

Premium for Company D :

face value = 2.25 , charges are 15% more for smokers

⇒ Charges = 15% of 250000 = $37500

Total charge = Charge × face value

= 37500 × 2.25 = $84375

Hence, The option A. is correct that is Aaron is paying the smallest premium possible with company B

mafiozo [28]4 years ago

8 0

Based on the given information above about the annual insurance of Aaron, the statement that is considered true would be option A. Aaron is paying the smallest premium possible with Company B since <span>Company B only charges 18% more for smokers. Hope this is the answer that you are looking for.</span>

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