An insurance company offers a term life insurance policy with a renewable premium. The first year premium is $900. If the premiums increase 5.5% each year, how much will her premium be in 7 years? A $1,286 B $1,241 C $1,308 D $1,416​

Answers

Answer 1

Answer:

The answer is B

Step-by-step explanation:

Answer 2

If first year premium is $900 and the premiums increase 5.5% each year then the premium be in 7 years is $1308

What is Percentage?

percentage, a relative value indicating hundredth parts of any quantity.

An insurance company offers a term life insurance policy with a renewable premium.

The first year premium is $900

The premiums increase 5.5% each year,

[tex]A=Pe^r^t[/tex]

5.5%=5.5/100 =0.055

[tex]A = 900(e)^0^.^0^5^5^\times^7[/tex]

[tex]A=900e^0^.^3^8^5[/tex]

A=900×1.46

A=$1308

Hence, if first year premium is $900 and the premiums increase 5.5% each year then the premium be in 7 years is $1308

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