Answer:
difference in the annual life insurance premiums paid by a 35-year-old smoker and a 35-year-old non-smoker, if they both take out a $100000 policy for 20-year term is $151.
Step-by-step explanation:
We need to find the difference in smoker and non-smoker at same age 35 year is:
At 35, the annual premium for 20-year for a non-smoker is: 7.85
And 35, the annual premium for 20-year for a smoker is: 9.36
We have been given a premium value for per 1000
We have[tex]1000\rightarrow 9.36[/tex]
That means[tex]1\rightarrow \frac{9.36}{1000}\cdot 100000=936[/tex]
Similarly, [tex]1000\rightarrow 7.85[/tex]
That means[tex]1\rightarrow \frac{7.85}{1000}\cdot 100000=785[/tex]
So, the difference would be: 936-785=151
