At Age 28, Kitty Had Decided to Purchase a 10-Year

question 130

Multiple Choice

At age 28, Kitty had decided to purchase a 10-year term insurance policy with a face value of $350,500. Use Tables 19-1 and 19-2 from your text to calculate her semiannual premium. (Round your answer to the nearest cent)

• A) $1,135.00
• B) $869.38
• C) $1564.75
• D) $693.67

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Definitions:

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, which pay periodic interest payments and return the principal at maturity.

Charitable Organization

An entity established for philanthropic purposes, to promote public benefit without the intention of generating profits for owners or stakeholders.

Eli Lilly

An American pharmaceutical company known for developing a wide range of medications, including treatments for diabetes, cancer, and psychiatric disorders.

Endowments

Funds donated to institutions with the stipulation that the principal remains intact and only the investment income is spent.