Question

Which item is more economical?

a $100,000 life insurance policy at $0.55 per $1000 per month
a $100,000 life insurance policy at $170 per quarter.

Answer 1

The correct answer is: a $100,000 life insurance policy at $0.55 per $1000 per month (more economical)


Explanation:

(1)a $100,000 life insurance policy at $0.55 per $1000 per month

It means:
$0.55*100*12  = $660 [There are 100 thousands in $100000 and there are 12 months in the year]

(2)a $100,000 life insurance policy at $170 per quarter.

It means:
$170*4 = $680 [There are 4 quarters in a year]

As $680 > $660 therefore Option (A) is the economical option.

Answer 2

Answer:

$100,000 life insurance policy at $0.55 per $1000 per month

Step-by-step explanation: