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Use the following table to determine the annual premium for a [tex]$75,000$[/tex] 10-year term policy for a 25-year-old male. Round your answer to the nearest cent.

\begin{tabular}{|c|c|c|c|c|}
\hline \multirow{3}{*}{Age} & \multicolumn{4}{|c|}{Term Insurance} \\
\cline{2-5} & 5-Year Term & \multicolumn{2}{c|}{10-Year Term} \\
\cline{2-5} & Male & Female & Male & Female \\
\hline 20 & [tex]$\$[/tex] 2.43[tex]$ & $[/tex]\[tex]$ 2.07$[/tex] & [tex]$\$[/tex] 4.49[tex]$ & $[/tex]\[tex]$ 4.20$[/tex] \\
\hline 21 & 2.49 & 2.15 & 4.57 & 4.29 \\
\hline 22 & 2.55 & 2.22 & 4.64 & 4.36 \\
\hline 23 & 2.62 & 2.30 & 4.70 & 4.42 \\
\hline 24 & 2.69 & 2.37 & 4.79 & 4.47 \\
\hline 25 & 2.77 & 2.45 & 4.85 & 4.51 \\
\hline
\end{tabular}

a. [tex]$\$[/tex] 363.75$

b. [tex]$\$[/tex] 207.75$

c. [tex]$\$[/tex] 183.75$

d. [tex]$\$[/tex] 338.25$



Answer :

GinnyAnswer
To determine the annual premium for a \$75,000 10-year term policy for a 25-year-old male, we will follow these steps:

1. Identify the relevant premium per \$1,000 of face value from the table:
- For a 25-year-old male with a 10-year term policy, the premium per \[tex]$1,000 of face value is \$[/tex]4.85.

2. Determine the face value of the policy:
- The face value of the policy is \$75,000.

3. Calculate the number of units of \$1,000 in the face value:
- Divide the face value by \$1,000:
[tex]\[ \frac{75,000}{1,000} = 75 \text{ units} \][/tex]

4. Calculate the total annual premium:
- Multiply the number of units (75) by the premium per \[tex]$1,000 (\$[/tex]4.85):
[tex]\[ 75 \times 4.85 = 363.75 \][/tex]

So, the annual premium for a \[tex]$75,000, 10-year term policy for a 25-year-old male is \(\$[/tex]363.75\).

Thus, the correct answer is:
a. \$363.75

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