Sherita, age 37, wants to pay no more than $750 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $3.96, what is the largest 15-year term policy she can buy without spending more than $750 annually?

The premium is $3.96 per year for each $1,000 of coverage. Divide Sherita’s $750 budget by $3.96 to find that she can afford about 189.39 units of $1,000, or about $189,394 in coverage. Of the choices, $189,000 is the largest amount within her budget; its annual premium is $189 × $3.96 = $748.44.

AI-written and checked against the verified answer.