Question

1. Link took out a $160,000, 10-year term policy at age 45. The premium per $1,000 is $4.18. He will be 55 years old next year when the premium per $1,000 will be $6.47. What is the amount of the increase?

Answer 1

Hi there! To find the percent of change, you do change/original = x/100, because we are looking for the percent of change. The change is the amount between the two numbers and the original is the previous amount. 6.47 - 4.18 is 2.29. Plug in the values to get 2.29/4.18 = x/100. Cross multiply the values in order to get 229 = 4.18x. Now, divide each side by 4.18 to isolate the variable. When you do, you get 54.784689 or 54.8% when rounded to the nearest tenth. The amount of decrease is approx. 54.8%.