To determine the total amount Nikos will pay for his 20-year life insurance policy, we need to consider the information given:
- Coverage amount: \[tex]$300,000.
- Nikos's age: 39.
- Annual premium per \$[/tex]1,000 of coverage for a 20-year term for a male aged 35-39: \[tex]$10.33.
We will follow these steps:
1. Calculate the annual premium.
2. Calculate the total premium over the 20-year term.
### Step 1: Calculate the Annual Premium
We know the annual premium rate per \$[/tex]1,000 of coverage for Nikos is \[tex]$10.33. Therefore, we must first determine how many units of \$[/tex]1,000 are in \[tex]$300,000:
\[
\text{Number of \$[/tex]1,000 units} = \frac{\[tex]$300,000}{\$[/tex]1,000} = 300
\]
Next, we multiply the number of units by the annual premium per \[tex]$1,000:
\[
\text{Annual premium} = 300 \times \$[/tex]10.33 = \[tex]$3,099.00
\]
### Step 2: Calculate the Total Premium Over 20 Years
To find the total amount paid over the 20-year term, we simply multiply the annual premium by the number of years in the term:
\[
\text{Total premium} = \$[/tex]3,099.00 \times 20 = \[tex]$61,980.00
\]
### Final Answer
Nikos will pay a total amount of \$[/tex]61,980.00 for 20 years of coverage.
This thorough process ensures that we account for all necessary details to determine the total cost of the life insurance policy accurately.
