An individual takes out a $5,000 life insurance policy at a yearly rate of $29.62 per $1,000. What is the yearly premium?

To calculate the yearly premium for the life insurance policy, you can use the following steps:

1. **Determine the rate per $1,000**: The given rate is $29.62 per $1,000.

2. **Calculate the number of $1,000 units in the policy**: Since the policy is $5,000, divide $5,000 by $1,000.
   \[
   \frac{5000}{1000} = 5
   \]

3. **Multiply the rate by the number of $1,000 units**: Now, multiply the rate by the number of $1,000 units.
   \[
   5 \times 29.62 = 148.10
   \]

So, the yearly premium for the $5,000 life insurance policy is **$148.10**.

Would you like further details or have any other questions?

Here are some related questions to explore:

1. How would the premium change if the policy amount increased to $10,000?
2. What would the yearly premium be if the rate per $1,000 was $35 instead?
3. How does the rate per $1,000 typically vary based on the insured's age?
4. What factors can influence the premium rates of life insurance policies?
5. If a $7,500 policy is taken, how would you calculate the premium?
6. How do insurance companies calculate the rates per $1,000 for life insurance policies?
7. What is the difference between term life and whole life insurance in terms of premium calculation?
8. How would inflation affect the future premiums of life insurance policies?

**Tip:** Always review the terms and conditions of an insurance policy to understand how rates and premiums may change over time.

Learn how to calculate the yearly premium for a $5,000 life insurance policy using the rate of $29.62 per $1,000. Follow a step-by-step solution with detailed calculations and understand the formula used to determine the premium. Suitable for Grades 7-9.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation