Question

Carl Pitt is 35 years old. He wants to purchase a $50,000, 5-year term life insurance policy. The
premium per $1,000 is $2.50. What is his annual premium?

Answer 1

Answer:

The annual premium is 50,030 or it could be 50,300.

Hope I Helped I'm New :D

Answer 2

The annual premium of Carl Pitt for the considered insurance is $125

How to calculate annual premium?

Annual premium to be paid = Face value of insurance × rate of premium

Here we're specified that:

• Face value of Insurance = $50,000
• Rate of premium to be paid = $2.5 per $1000

In fraction, the rate is 2.5/1000

Thus, the annual premium would be:

Annual premium = $50000 \times \dfrac{2.5}{1000} = 125 \: \rm dollars$

Thus, the annual premium of Carl Pitt for the considered insurance is $125

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