11
QuizMultiple Choice

Life Insurance

Question 11 • Financial Math - MA2007

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?

Answer
A
$1,067.27
B
$2,550.90
C
$212.57
D
$171.33

Explanation

The policy covers 165 units of $1,000, so the annual premium is 165 × $15.46 = $2,550.90. Divide by 12 to get about $212.58 per month, which corresponds to choice C, $212.57 (the listed amount differs by one cent due to rounding).

AI-written and checked against the verified answer.

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