Topic Test Answers

Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45. The Annual Life Insurance Premium (per $1000 of face value) for a 40-year-old male is 22.60 and for a 45-year-old male is 27.75. What would be the difference in total premium costs over 20 years for this policy at the two age levels? a. $69,375 b. $11,725 c. $12,875 d. $644 Please select the best answer from the choices provided

The extended warranty on a garage door is $238. If the warranty costs 35% of the purchase price, how much does the garage door itself cost, to the nearest dollar?a.$833b.$393c.$740d.$680

When shopping for life insurance, you should look for:a.A company with a low premium rate and a good rating.b.A company that gives you benefits, like rewards points. c.A company with an agent that you like and trust. d.A company that has many policies to choose from.

Auto insurance options offered by AA Auto Insurance are outlined in the table below. What monthly payment would you expect for an insurance policy through AA Auto Insurance with the following options?Bodily Injury: $25/50,000Property Damage: $25,000Collision: $250 deductibleComprehensive: $100 deductibleAA Auto Insurance Type of Insurance CoverageCoverage LimitsAnnual PremiumsBodily Injury $25/$50,000$22.50 $50/100,000$31.75 $100/300,000$40.25 Property Damage$25,000 $120.50 $50,000 $144.75 $100,000 $193.00 Collision$100 deductible$520.00 $250 deductible$415.25 $500 deductible$275.75 Comprehensive$50 deductible$110.25 $100 deductible$100.00 a.$43.23b.$46.10c.$54.85d.$64.44

Rudy has been paying an annual homeowners insurance premium of $1,106.30 ($0.37 per $100 of value) since he first purchased his house. For the past six months, Rudy has completed some major improvements to his house to improve its overall value. If Rudy successfully adds $50,000 to the value of his house, what will his new annual homeowners insurance premium be? a.$185.00b.$315.00c.$1,291.30d.$1,351.14