52
RCMultiple Choice

Cumulative Exam — Cumulative exam

Question 52 • Mathematical Models with Applications - MA4072 CR

A 30-year-old female purchased a 20-Year Endowment insurance policy at the age of 23. The face value of the policy was $78,250. She asks her insurance agent for the extended term nonforfeiture option. Given the table below and the permanent insurance amount of $37.80 per thousand, determine the annual premium and the Extended Term.

Question illustration
Answer
A
Annual Premium of $2,532.10; 31 years and 182 days
B
Annual Premium of $2,957.85; 26 years and 10 days
C
Annual Premium of $3,210.23; 37 years and 50 days
D
Annual Premium of $3,298.54; Life