eddie, a 37 - year - old male, bought a $70,000, 20 - year life insurance policy through his employer. eddie…

eddie, a 37 - year - old male, bought a $70,000, 20 - year life insurance policy through his employer. eddie is paid biweekly. how much is deducted from each of his paychecks for life insurance? 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 $21.35 $23.13 $27.81 $30.13

eddie, a 37 - year - old male, bought a $70,000, 20 - year life insurance policy through his employer. eddie is paid biweekly. how much is deducted from each of his paychecks for life insurance? 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 $21.35 $23.13 $27.81 $30.13

Answer

Answer:

A. $21.35

Explanation:

Step1: Determine annual premium rate

Eddie is 37 - year - old male, 20 - year policy. Rate is $7.93 per $1000 of coverage from table.

Step2: Calculate annual premium

Coverage is $70000. Number of $1000 units is $\frac{70000}{1000}=70$. Annual premium is $7.93\times70 = 555.1$.

Step3: Calculate bi - weekly deduction

There are 52 weeks in a year, so number of bi - weekly periods is $\frac{52}{2}=26$. Bi - weekly deduction is $\frac{555.1}{26}\approx21.35$.