Question

Jade wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10 year policy? A 5-column table with 6 rows titled Annual Life Insurance Premium (per 1,000 dollars of face value). Column 1 is labeled age with entries 30, 31, 32, 33, 34, 35. Column 2 is labeled 5-year term male with entries 3. 98, 4. 08, 04. 19, 4. 30, 4. 42, 4. 54. Column 3 is labeled 5 year term female with entries 3. 66, 3. 76, 3. 87, 3. 98, 4. 10, 4. 22. Column 4 is labeled 10-year term male with entries 6. 06, 06. 13, 6. 30, 6. 38, 6. 45, 6. 53. Column 5 is labeled Female with entries 5. 72, 5. 79, 5. 85, 5. 93, 6. 01, 06. 9. A. $1,290 b. $1,202 c. $6,010 d. $820.

Answer 1

Premium rates are usually for  premium per fixed face value. Jade's annual premium for a 10 year policy is given by Option b: $1,202

How to calculate the total annual premium for $x ?

If its given that the annual premium is $p per $y face value, then we can calculate the annual premium for $1 face value and then use it to calculate annual premium for $x.

Using proportions, we get:

$\rm \ y \: face \: value : \ p \: annual \: premiun\\\\\rm \ 1 \: face \: value : \ \dfrac{p}{y} \: annual \: premiun\\\\\rm \ x\:face\: value : \ \dfrac{p \times x}{y} \: annual \: premiun$

For given case, from the tables, we see that for age 34, and 10 year life insurance for female gender , there is annual premium of 6.01 per $1000 face value.
Thus, we have p = 6.01, y = 1000

Since Jade wants to buy Life insurance for $200,000, thus, x = $200,000

Putting it in the above derived formula, we get:

$\rm \ x\:face\: value : \ \dfrac{p \times x}{y} \: annual \: premium\\\\\rm \ 200000\:face\: value : \ \dfrac{6.01 \times 200000}{1000} \: annual \: premium\\ = \ 1202 \: annual \: premiun$

Thus, Jade's annual premium for a 10 year policy is given by Option b: $1,202

Learn more about calculating annual premium cost here:

brainly.com/question/13168988