Question

Jenna, a 40-year-old female, bought a $650,900, 20-year life insurance policythrough her employer. Jenna is paid weekly. How much is deducted from each of herpaychecks? (use the table) Round answer to the hundredths place. If the answerdoesn't have a hundredths place then use zeros so that it does.

Answer 1

ANSWER:

$120

STEP-BY-STEP EXPLANATION:

Jenna is a 40-year-old woman and her policy is for 20 years, so according to the table, for every $1,000, $9.60 per year is deducted.

Now, Jenna's policy is $650,900, therefore, the annual deduction in her case taking into account her rate would be:

$\begin{gathered} \frac{650900}{1000}=650.9\cong650 \\ \\ \text{ Therefore:} \\ 650\cdot9.6=6240 \end{gathered}$

Now, this is the annual result, but since the payments are weekly and we know that there are 52 weeks in a year, then:

$\begin{gathered} d=\frac{6240}{52} \\ \\ d=\text{ \ 120} \end{gathered}$

Which means that in each payment they deduct $120