dawson, a 42 - year - old male, bought a $180,000, 20 - year life insurance policy. what is dawsons annual…

dawson, a 42 - year - old male, bought a $180,000, 20 - year life insurance policy. what is dawsons annual premium? use the table. abc term life insurance company age at issue annual premium per $1000 of coverage male female 10 - year 20 - year 20 - 24 23 - 27 $2.50 $3.80 25 - 29 28 - 32 $3.25 $5.84 30 - 34 33 - 37 $3.82 $7.93 35 - 39 38 - 42 $4.55 $10.33 40 - 44 43 - 47 $5.78 $13.68 45 - 49 48 - 52 $7.53 $17.56 $819.00 $1040.40 $1859.40 $2462.40

dawson, a 42 - year - old male, bought a $180,000, 20 - year life insurance policy. what is dawsons annual premium? use the table. abc term life insurance company age at issue annual premium per $1000 of coverage male female 10 - year 20 - year 20 - 24 23 - 27 $2.50 $3.80 25 - 29 28 - 32 $3.25 $5.84 30 - 34 33 - 37 $3.82 $7.93 35 - 39 38 - 42 $4.55 $10.33 40 - 44 43 - 47 $5.78 $13.68 45 - 49 48 - 52 $7.53 $17.56 $819.00 $1040.40 $1859.40 $2462.40

Answer

Answer:

D. $2462.40

Explanation:

Step1: Determine the premium per $1000

Dawson is a 42 - year - old male with a 20 - year policy. From the table, the annual premium per $1000 of coverage for a 40 - 44 year old male with a 20 - year policy is $13.68.

Step2: Calculate the number of $1000 units

The coverage amount is $180,000. The number of $1000 units is $\frac{180000}{1000}=180$.

Step3: Calculate the annual premium

The annual premium is the premium per $1000 times the number of $1000 units. So, $13.68\times180 = 2462.40$.