Jacob wants to buy a $500,000 15-year term life policy, and the annual premium rate (per $1000 of face value) for his age group is $6.78. if jacob lives until the end of the term of his policy, how much will jacob have paid in premiums overall? a. $101,700 b. $3,390 c. $50,850 d. $73,746

The answer would have to be C) 50,850

$50850 or (c)

Steps:

Since the premium is $6.78 per $1000 per year, we need to first calculate the total premium for the $500,000 amount for 1 year:

total premium / yr = $6.78 * 500 = $3390 / yr

The term of the policy is 15 years and we are looking for the amount Jacob paid after the full term, so:

total amount paid = 15 yrs  * $3390 / yr = $50850

$75.00

step-by-step explanation:

i = prt

i = 1,5000 * 0.025 * 2

i = 75