Calculate the Annual Premium for Life Insurance by Using the Table

question 120

Multiple Choice

Calculate the annual premium for life insurance by using the table lookup for: $$\begin{array} { l l } \text { Face Value: } & \$ 60,000 \\\text { Gender: } & \text { Female } \\\text { Type: } & \text { Straight-Life Policy } \\\text { Age } & 38\end{array}$$

• A)$7,920
• B)$787.20
• C)$675.60
• D)$600.00
• E)None of these

---

Definitions:

Indifference Curve

A curve representing all combinations of goods or services among which a consumer is indifferent, showing different combinations that provide the same level of utility to the consumer.

Expected Return

The anticipated profit or loss from an investment, taking into account the possibility of various outcomes.

Standard Deviation

A parameter that assesses the extent of difference or range within a batch of numerical values.

Risk-Averse Investor

An investor who prefers lower returns with known risks rather than higher returns with unknown risks.