Lamar, age 43, wants to pay no more than $1,000 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $12.59, what is the largest whole life policy he can buy without spending more than $1,000 annually?

Each $1,000 of coverage costs $12.59 per year. $1,000 ÷ $12.59 is about 79.43, so the largest whole-thousand amount he can afford is $79,000. Its annual premium is 79 × $12.59 = $994.61; $80,000 would cost $1,007.20, which exceeds his limit. The correct choice is $79,000.

AI-written and checked against the verified answer.