Tom harris, a young father, is twenty-four years old. he wishes to purchase $7,000 of a ten-year term insurance. what will be his annual premium? 28.14 28.42 28.70 29.05

Option D is correct.

His Annual premium will be $29.05

Step-by-step explanation:

Firstly, find the person age and the insurance rate by  insurance rate by age chart under the correct policy.

As per the given statement: Tom Harris, a young father, is twenty-four years old.  

A 24 years olds insurance rate is 4.15.

Also, it is given that he wishes to purchase $7,000 of a ten-year term insurance.

Next, take the face value of there policy and divide it by 1000.

$7,000 divided by 1000

i,e

then, lastly multiply the insurance rate with the answer to the division problem  between the rate and the face value.

i.e

Annual premium =

Therefore, his annual premium will be, $29.05

c

step-by-step explanation: