Answer:
The annual premium will be $1080.
Step-by-step explanation:
The total amount Dad brought of the term life insurance = $200,000
The rate at which Dad brought of the term
life insurance = $5.40 per $1000
Lets take this simple and count the total number of $1000 units in $200,000.
So,
The total number of $1000 units in $200,000 = $200,000/$1000 = 200
So, 200 are the total number of $1000 units in $200,000.
As the rate per unit $1000 is $5.40.
So,
multiply $5.40 with 200 to get the annual premium = $5.40 × 200 = $1080
∵ As the rate per unit $1000 is $5.40, and the total amount is $200,000. And the total number of $1000 units in $200,000 is 200. Therefore, we multiplied $5.40 with 200 to get the annual premium.
Hence, The annual premium will be $1080.
Keywords: life insurance, annual premium
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