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# Dave purchased a \$24000 life insurance policy at the price of \$31 per \$1000 of coverage. If he pays the premium quarterly, how much is each installment?

I need help figuring this out.

### 3 Answers by Expert Tutors

Garnet H. | Calculus, Physics, Stat, Linear Algebra, GRE, GMAT, SAT... TutoringCalculus, Physics, Stat, Linear Algebra,...
5.0 5.0 (904 lesson ratings) (904)
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Cost = \$31/\$1000  *  \$24000 = \$744

Quarterly payment = \$744 / 4 = \$186

Thanks!

Kris P. | Education/Research/Media/Communications Specialist: FACTOTUM: FOR HIREEducation/Research/Media/Communications ...
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One cannot determine the answer, since you did not say whether Orr was \$31 per month, quarter or annum, etc.!

BRUCE S. | Learn & Master Physics & Math with Bruce SLearn & Master Physics & Math with Bruce...
4.9 4.9 (36 lesson ratings) (36)
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John,

The mathematical information is:

Coverage:  \$24000 policy

Pooicy Price:  \$31 per \$1000 of coverage    ( I will assume that this is the entire cost per \$1000 of policy face value.

Total policy cost is \$31 * (\$24000/\$1000) or \$31 * 24 = \$744

The policy cost is paid in installment quaterly or every 3 months.  (I assume the cost is paid in one year.  The duration of quarterly payments is NOT specified!)  Therefore the policy cost is paid in 4 equal payments.

Installment Payment  = \$744 / 4 = \$186 every 3 months for 1 year.

BruceS