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Because Bernard has some health issues, he must pay [tex]$15 \%$[/tex] more for life insurance. About how much more annually will a [tex]$\$[/tex]115,000[tex]$ 10-year term insurance at age 35 cost Bernard than someone of the same age without health issues?

\begin{tabular}{|c|c|c|}
\hline
Age & \multicolumn{2}{|c|}{Annual Insurance Premiums (per $[/tex]\[tex]$1,000$[/tex] of face value)} \\
\hline
35 & Male & Female \\
\hline
35 & 1.40 & 1.36 \\
\hline
40 & 1.64 & 1.36 \\
\hline
45 & 2.01 & 1.59 \\
\hline
\end{tabular}

a. [tex]$\$[/tex]161[tex]$
b. $[/tex]\[tex]$185$[/tex]
c. [tex]$\$[/tex]1,073[tex]$
d. $[/tex]\[tex]$24$[/tex]

Please select the best answer from the choices provided:
A, B, C, or D.



Answer :

GinnyAnswer
Sure, let's go through this step by step to understand the additional cost Bernard has to pay due to his health issues.

1. Determine the base annual premium for someone without health issues:
- The insurance amount is \[tex]$115,000. - The annual premium per \$[/tex]1,000 of insurance coverage at age 35 for males is \[tex]$1.40. To find the total base annual premium: \[ \text{Base Annual Premium} = \left(\frac{\$[/tex]115,000}{\[tex]$1,000}\right) \times \$[/tex]1.40 = 115 \times 1.40 = \[tex]$161.00 \] 2. Calculate the additional premium Bernard has to pay due to health issues: - Bernard has to pay an additional 15% of the base annual premium due to his health issues. To find the additional premium: \[ \text{Additional Premium} = 0.15 \times \$[/tex]161.00 = \[tex]$24.15 \] 3. Calculate the total annual premium for Bernard: - Add the additional premium to the base annual premium. \[ \text{Total Annual Premium for Bernard} = \$[/tex]161.00 + \[tex]$24.15 = \$[/tex]185.15
\]

4. Determine the difference in cost between Bernard and a healthy person:
- This is simply the additional premium that Bernard has to pay.

[tex]\[ \text{Additional Cost Annually} = \$24.15 \][/tex]

After going through these steps, we see that the additional amount Bernard has to pay annually due to his health issues is [tex]\(\$24.15\)[/tex].

Among the choices provided, the closest match to this amount is:

[tex]\[ \boxed{d. \$24} \][/tex]

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