TABLE 20-1 Flve-year Stralght Twenty- Twenty-year Age term Age life Age payment life Age endowment ife insurance rates for males (for emales, subtract 3 years from the ge)? 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 1.87 30 8.85 30 12.05 30 20.90 31 1.87 31 9.27 31 12.57 31 21.88 32 1.88 32 9.71 32 13.10 32 22.89 33 1.95 33 10.20 33 13.67 33 23.98 34 2.08 34 10.71 34 14.28 34 25.13 35 2.23 35 11.26 35 14.92 35 26.35 36 2.44 36 11.84 36 15.60 36 27.64 37 2.67 37 12.46 37 16.30 37 28.97 38 2.95 38 13.12 38 17.04 38 30.38 39 3.24 39 13.8 1 39 17.81 39 31.84 40 3.52 40 14.54 40 18.61 40 33.36 41 3.79 41 15.30 41 19.44 41 34.94 202.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter8: Insuring Your Life
Section: Chapter Questions
Problem 6FPE
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Question

Calculate the annual premium for the following policy. (Use Table 20.1.) (for females subtract 3 years from the table.) (Round your answer to the nearest cent.)

 

**TABLE ATTACHED*****

 

Amount of coverage (face value of policy) Age and sex of insured Type of insurance policy Annual premium
$50,000 27 (F)
20-year endowment
 
TABLE 20-1
Five-year
Stralght
Twenty-
payment life
Twenty-year
Age
term
Age
life
Age
Age
endowment
Life insurance rates for males (for
females, subtract 3 years from the
age)?
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
9.9 1
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
1.87
30
8.85
30
12.05
30
20.90
31
1.87
31
9.27
31
12.57
31
21.88
32
1.88
32
9.71
32
13.10
32
22.89
33
1.95
33
10.20
33
13.67
33
23.98
34
2.08
34
10.71
34
14.28
34
25.13
35
2.23
35
11.26
35
14.92
35
26.35
36
2.44
36
11.84
36
15.60
36
27.64
37
2.67
37
12.46
37
16.30
37
28.97
38
2.95
38
13.12
38
17.04
38
30.38
39
3.24
39
13.8 1
39
17.81
39
31.84
40
3.52
40
14.54
40
18.61
40
33.36
41
3.79
41
15.30
41
19.44
41
34.94
42
4.04
42
16.11
42
20.31
42
36.59
43
4.26
43
16.96
43
21.21
43
38.29
44
4.50
44
17.86
44
22.15
44
40.09
Transcribed Image Text:TABLE 20-1 Five-year Stralght Twenty- payment life Twenty-year Age term Age life Age Age endowment Life insurance rates for males (for females, subtract 3 years from the age)? 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 9.9 1 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 1.87 30 8.85 30 12.05 30 20.90 31 1.87 31 9.27 31 12.57 31 21.88 32 1.88 32 9.71 32 13.10 32 22.89 33 1.95 33 10.20 33 13.67 33 23.98 34 2.08 34 10.71 34 14.28 34 25.13 35 2.23 35 11.26 35 14.92 35 26.35 36 2.44 36 11.84 36 15.60 36 27.64 37 2.67 37 12.46 37 16.30 37 28.97 38 2.95 38 13.12 38 17.04 38 30.38 39 3.24 39 13.8 1 39 17.81 39 31.84 40 3.52 40 14.54 40 18.61 40 33.36 41 3.79 41 15.30 41 19.44 41 34.94 42 4.04 42 16.11 42 20.31 42 36.59 43 4.26 43 16.96 43 21.21 43 38.29 44 4.50 44 17.86 44 22.15 44 40.09
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