Question

Tom Worker pays $900 annually for $60,000 worth of life insurance.

Answer 1

Answer: 1) $9000

2) $5340

3)59.3%

Step-by-step explanation:

Since we have given that

Worth of life insurance = $60000

Amount of premium = $900

After the end of 10 years,

1) Amount of premium Tom had paid is given by

$10\times 900=\ 9000$

2) At the end of 10 years ,

The cash value of his policy by using the table is given by

$\frac{89}{1000}\times 60000\\\\=\ 5340$

3) At the end of  10 years ,

Ratio of cash value to premiums paid be

$5340:9000\\\\=\frac{5340}{9000}\times 100\\\\=59.3\%$