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Calculate the annual premium for the following policy. (Use Table 20.1.) (for females subtract 3 years from the table.) Note: Round your answer to the nearest cent. Amount of coverage (face value of policy) $ 195,000 Age and sex of insured 37 M Type of insurance policy 20-payment life Annual premium

Calculate the annual premium for the following policy. (Use Table 20.1.) (for females subtract 3 years from the table.) Note: Round your answer to the nearest cent. Amount of coverage (face value of policy) $ 195,000 Age and sex of insured 37 M Type of insurance policy 20-payment life Annual premium

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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**TABLE 20.1** Life insurance rates for males (for females, subtract 3 years from the age. Non-binary individuals currently need to apply as male or female.)[^2] | Age | Five-year term | Age | Straight life | Age | Twenty-payment life | Age | Twenty-year endowment | |-----|----------------|-----|---------------|-----|---------------------|-----|-----------------------| | 20 | 1.85 | 20 | 5.90 | 20 | 8.28 | 20 | 13.85 | | 21 | 1.85 | 21 | 6.13 | 21 | 8.61 | 21 | 14.35 | | 22 | 1.85 | 22 | 6.35 | 22 | 8.91 | 22 | 14.92 | | 23 | 1.85 | 23 | 6.60 | 23 | 9.23 | 23 | 15.54 | | 24 | 1.85 | 24 | 6.85 | 24 | 9.56 | 24 | 16.05 | | 25 | 1.85 | 25 | 7.13 | 25 | 9.91 | 25 | 17.55 | | 26 | 1.85 | 26 | 7.43 | 26 | 10.29 | 26 | 17.66 | | 27 | 1.86 | 27 | 7.75 | 27 | 10.70 | 27 | 18.33 | | 28 | 1.86 | 28 | 8.08 | 28 | 11.12 | 28 | 19.12 | | 29 | 1.87 | 29 | 8.46 | 29 | 11.58 | 29 | 20.00 | | 30 |
Transcribed Image Text:**TABLE 20.1** Life insurance rates for males (for females, subtract 3 years from the age. Non-binary individuals currently need to apply as male or female.)[^2] | Age | Five-year term | Age | Straight life | Age | Twenty-payment life | Age | Twenty-year endowment | |-----|----------------|-----|---------------|-----|---------------------|-----|-----------------------| | 20 | 1.85 | 20 | 5.90 | 20 | 8.28 | 20 | 13.85 | | 21 | 1.85 | 21 | 6.13 | 21 | 8.61 | 21 | 14.35 | | 22 | 1.85 | 22 | 6.35 | 22 | 8.91 | 22 | 14.92 | | 23 | 1.85 | 23 | 6.60 | 23 | 9.23 | 23 | 15.54 | | 24 | 1.85 | 24 | 6.85 | 24 | 9.56 | 24 | 16.05 | | 25 | 1.85 | 25 | 7.13 | 25 | 9.91 | 25 | 17.55 | | 26 | 1.85 | 26 | 7.43 | 26 | 10.29 | 26 | 17.66 | | 27 | 1.86 | 27 | 7.75 | 27 | 10.70 | 27 | 18.33 | | 28 | 1.86 | 28 | 8.08 | 28 | 11.12 | 28 | 19.12 | | 29 | 1.87 | 29 | 8.46 | 29 | 11.58 | 29 | 20.00 | | 30 |
**Instructions:** Calculate the annual premium for the following policy. (Use Table 20.1.) (For females, subtract 3 years from the table.) **Note:** Round your answer to the nearest cent. **Table:** | **Amount of coverage** (face value of policy) | **Age and sex of insured** | **Type of insurance policy** | **Annual premium** | |----------------------------------------------|----------------------------|------------------------------|--------------------| | $195,000 | 37 M | 20-payment life | | **Explanation:** - **Amount of Coverage:** The policy covers $195,000. - **Age and Sex of Insured:** The insured person is a 37-year-old male. - **Type of Insurance Policy:** This is a 20-payment life insurance policy. - **Annual Premium:** This is the amount you need to calculate using the given table reference.
Transcribed Image Text:**Instructions:** Calculate the annual premium for the following policy. (Use Table 20.1.) (For females, subtract 3 years from the table.) **Note:** Round your answer to the nearest cent. **Table:** | **Amount of coverage** (face value of policy) | **Age and sex of insured** | **Type of insurance policy** | **Annual premium** | |----------------------------------------------|----------------------------|------------------------------|--------------------| | $195,000 | 37 M | 20-payment life | | **Explanation:** - **Amount of Coverage:** The policy covers $195,000. - **Age and Sex of Insured:** The insured person is a 37-year-old male. - **Type of Insurance Policy:** This is a 20-payment life insurance policy. - **Annual Premium:** This is the amount you need to calculate using the given table reference.
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