Business Math 7.1 and 7.2 Review

Paul Poncelli, age 30, is comparing the premium for a $100,000, whole life policy he may take now and the premium for the same policy taken out at age 35. Find the difference in total premium costs over 20 years for this policy at the two age levels.

• $336

• $1,408

• $1,744

• $3,152

Melva Davis paid an annual premium of $12.80 per $1,000 for an $8,000 life insurance policy. Her policy also paid a dividend of $18.90, which she used to reduce her premium. What net premium did Melva pay?

• $83.50

• $102.40

• $121.30

Trent Coleman pays a premium of $18.80 per $1,000 for a $120,000 life insurance policy. During the year, his policy paid a dividend of $11.90. What is the net cost of the policy for the year?

• $2,256.00

• $2,244.10

• $2,267.90

Alicia Ronzetti bought a 30-year decreasing term life insurance policy to repay her 30-year, $150,000 mortgage in the event of her death. The insurance company’s annual rate per $1,000 for the policy was $0.76. What was her annual premium?

• $1,140

• $114

• $11,400

Silvia Olivares takes out a universal life policy for $50,000 and pays $490 in annual premiums. What total amount will she pay in premiums in $20 years?

• $490

• $50,000

• $9,800

• $2,500

Alicia Ronzetti bought a 30-year decreasing term life insurance policy to repay her 30-year, $150,000 mortgage in the event of her death. The insurance company’s annual rate per $1,000 for the policy was $0.76. What was her annual premium?

• $1,140

• $114

• $11,400

Emilio Mendoza has a single plan. The PPO annual premium is $10,980. The employer pays 85% of the cost. How much is deducted from his weekly paycheck?

• $31.67

• $44.87

• $179.48

• $1,647.00

Barbara has a family membership in a group health insurance program. The annual premium is $12,890. Barbara's employer pays 75% of the total cost. What is Barbara's annual contribution?

• $171.87

• $3,222.50

• $6,666.36

• $9,667.50

Robert Finch is single and has a health insurance plan with the benefits listed below. His recent network health care costs include co-payments for 1 emergency room visit, 8 physician visits, and 4 specialist visits. What amount did Robert pay?

• $695

• $670

• $590

• $570

Determine a family's network plan costs with the following co-payments: 22 physician visits, 10 specialist visits, and 8 physical therapy visits at $80 each, 1 emergency room visit plus ambulance fee. There was also a hospital charge of $2,390.

• $825

• $1,303

• $2,053

• $3,215