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Use the table to answer the question. The sample life insurance premium table illustrates the monthly premium for every $25,000 of coverage. Age Nonsmoker Male Nonsmoker Female Smoker Male Smoker Female Under 24 $3.00 $2.50 $4.50 $4.00 24 to 30 $4.00 $3.50 $6.15 $5.25 31 to 40 $5.50 $4.40 $9.00 $6.50 41 to 50 $7.50 $6.75 $13.00 $12.00 13 Max is 33 and smokes. How much would he save next year on a $75,000 policy if he quit smoking compared to if he continued smoking? Show your work or explain how you got your answer. (4 points) ​

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professorgeraint

Answer:

To calculate how much Max would save next year on a $75,000 policy if he quit smoking compared to if he continued smoking, follow these steps:

Find the monthly premiums: Determine the monthly premium for Max's age group (31 to 40) and smoking status:

Smoker male: $9.00 per $25,000 of coverage.

Nonsmoker male: $5.50 per $25,000 of coverage.

Calculate the monthly premium for a $75,000 policy:

Smoker male: Multiply the premium for a $25,000 coverage by 3 since Max wants a $75,000 policy.

$9.00 * 3 = $27.00 per month.

Nonsmoker male: Multiply the premium for a $25,000 coverage by 3 since Max wants a $75,000 policy.

$5.50 * 3 = $16.50 per month.

Calculate the monthly savings: Subtract the monthly premium for a nonsmoker from the monthly premium for a smoker.

$27.00 (smoker premium) - $16.50 (nonsmoker premium) = $10.50 per month.

Calculate the annual savings: Multiply the monthly savings by 12 months.

$10.50 * 12 = $126.00.

Therefore, if Max quit smoking, he would save $126.00 next year on a $75,000 policy compared to if he continued smoking.

Step-by-step explanation:

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