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Sarah, age 29, makes $45,000 a year and wants to buy a 15-year term policy that would replace seven years of her salary.  The annual premium rate (per $1000 of face value) for her age group is $1.46.  What is Sarah’s premium, to the nearest dollar? a. $460 b. $215 c. $66 d. $986

Respuesta :

rarrininger
Take Sarah's salary $45,000 X 7 (because she wants it to be 7 years salary)= $315,000.

Take the policy value $315,000 ÷ $1,000 (per $1000 face value) = $315

Now take $315 X $1.46 = $459.90 and round it to the nearest dollar is $460.
Sarah's premium is a. $460.
abiolataiwo2015

Based on the information given Sarah’s premium, to the nearest dollar is: a. $460.

Premium:

First step is to calculate Sarah's salary for 7 years

Salary=$45,000 × 7

Salary=$315,000

Second step is to calculate policy value per face value

Policy value per face value=$315,000 ÷ $1,000

Policy value per face value =$315

Third step is to calculate Sarah premium

Premium= $315 × $1.46

Premium =$459.90

Premium= $460(Approximately)

Inconclusion Sarah’s premium, to the nearest dollar is: a. $460.

Learn more about premium here:https://brainly.com/question/2151013

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