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Pavel [41]
3 years ago
12

Eva is 29 years old and has 2 children, ages 3 and 5. She makes 48,500 a year. Eva decides to buy a 400,000 10-year term policy

then renew the policy for another ten years afterwards. To renew the policy the insurance company charges an extra 40% to her premium rate.
Mathematics
1 answer:
earnstyle [38]3 years ago
3 0

Answer:

Eva would have been better off selecting the 20-year term policy.

Step-by-step explanation:

Base on the scenario been described in the question, Eva would have been better off selecting the 20-year term policy. This reason is because assuming Eva bought the 20-year term policy, she wont be paying the new charge of extra 40% to her premium rate, compared to when she bought the 10-year term policy then renew the policy for another ten years.

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