Mathematics, 06.12.2019 20:31 kristieroth1
Eva is 29 years old and has 2 children, ages 3 and 5. she makes $48,500 a year. eva decides to buy a $400,000 10-year term policy and then renew the policy for another ten years afterwards. to renew the policy the insurance company charges an extra 40% to her premium rate. given the options below, assess whether eva made a wise decision.
a. eva would have been better off selecting the 20-year term policy. b.even with the extra charge for renewal, eva’s plan is the least expensive. c.given that eva plans to renew, she should have selected the whole life policy. d.eva ends up paying the same amount for each policy.
Answers: 3
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