Answer:
The annual premium will be = $1080
Step-by-step explanation:
Total life insurance term amount = $200,000
The term life insurance rate per $1000 = $5.40
Let’s divide total term amount i.e. $200,000 by $1000 unit to get the total number of $1000 units in $200,000
So, $200,000 ÷ $1000 = 200
So, it is clear that 200 would be the total number of $1000 units in total term life insurance amount of $200,000.
Therefore, if rate per unit $1000 is $5.40, then we must have to multiply $5.40 by 200 to find the annual premium as the total number of $1000 units in total term life insurance amount
of $200,000 is 200.
So, $5.40 × 200 = $1080
Hence, the annual premium will be = $1080
Keywords: insurance, premium, annual premium
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