Answer:
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 [tex]\frac{\$7000}{1000} = \$7[/tex]
then, lastly multiply the insurance rate with the answer to the division problem between the rate and the face value.
i.e
Annual premium = [tex]7 \times 4.15 = \$29.05[/tex]
Therefore, his annual premium will be, $29.05
