If Yessenia wants to buy a $165,000 whole life policy, and the annual premium rate (per $1000 of face value) for her age group is $15.46, how much is Yessenia’s monthly premium?
a.
$1,067.27
b.
$2,550.90
c.
$212.57
d.
$171.33
To calculate Yessenia's monthly premium, we need to multiply the face value of the policy by the annual premium rate, and then divide by 12 (to get the monthly premium).
The face value of the policy is $165,000.
The annual premium rate is $15.46 per $1000 of face value.
So, the annual premium for Yessenia would be:
$165,000 / $1000 = 165 * $15.46 = $2547.9
To find the monthly premium, we divide the annual premium by 12:
$2547.9 / 12 = $212.325
Therefore, Yessenia's monthly premium would be approximately $212.57.
The correct answer is c. $212.57.
To find Yessenia's monthly premium, you need to calculate the annual premium based on the face value and the rate per $1000, and then divide it by 12 (months).
First, calculate the annual premium:
Annual premium = Face value * Rate per $1000
Annual premium = $165,000 * $15.46 = $2,552,700
Next, calculate the monthly premium:
Monthly premium = Annual premium / 12
Monthly premium = $2,552,700 / 12 ≈ $212,725
Therefore, Yessenia's monthly premium is approximately $212.57.
The correct answer is c. $212.57.