Derek purchased another life insurance policy covering his wife's life. The death benefit is $800,000, and...
Derek purchased another life insurance policy covering his wife's life. The death benefit is $800,000, and he pays a monthly payment of $200 to the insurance company. What is the annual premium of this policy?
A. $2,400
B. $24,000
C. $6,667
D. $66,667
Homework Answers
Annual premium = Monthly payment * 12 months
Annual premium = 200 * 12
Annual premium = $2,400
Option A
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