Tom Worker pays $900 annually for $60,000 worth of life insurance
At the end of 10 years how much will Tom have paid in premiums?
At the end of 10 years what will the cash value of his policy be?
What will the ratio of cash value to premiums paid be (as a percent to the nearest tenth)?

a) = $9000  10yr premiums

b) = $6016.95  Cash value

c) Ratio = 2.017 : 3   =  67%  Ratio Value To Paid Premiums in percent.

Step-by-step explanation:

The life insurance has a 5 year changeable rate after every 5 years.

So we need to find ratio every 5 years to work out what he was paid.

Instead of working out each one

We look for patterns for 60,000

If 5 year = 60,000 this means 2x

But it was 10 years 89/30 =2.9666...rep x (counter-check multiplier)

Back to questions

Tom paid 900 x 10 = 9,000 = ? in value

Answer a = What did he pay = $9000

Answer b = What is this $9000 in cash value where 5 years shows 30,000 the ratio is 9:30 = 3:10 so for 5 years this would = 30% of 30,000 =$9,000 for 5 years.

For 10 years the ratio goes up from 30% of 30,000 to 30,000 of 89,000 = 33.71

To prove 9000 is cash share of 30,000 at 5 years we have to half = $4500 for 5 years.

To prove 9000 is cash share of 89,000 at 10 years we take the $4500 and multiply it by 33.71% = 4500 x 1.3371 = 6016.95

b)  So his cash value = $6016.95

His life insurance = $60,000 as told

c) The ratio = 6016.95 : 9000 simplify = 2.017 : 3  (as we rounded and added + $16.95 as 0.017. for cash value to paid premiums

We  (counter-check multiplier) 2.9666

9000/2.9666 = 3033.77603991

9000- 6016.95 = 2983.05

So we can see after 5 years it decreased by $40

But for b and c, lets say we didnt half it 9000 = 30,000 = 30% 33.71 = 33.71%

We then see 30% of 89000 = 30,000 and x 9000 by 1.33.71 = $12033.90

So cash value will show 10 years = $12,033.90

Showing ratio 9000: 12033.90 =

9000/33.90 =265 = 2.65

So 75% - 2.65% = 3% rounded = 72%

This inverse = 28%

Then the percentage = 67.% can be changed to 28% or used as 72%