Antonio and Trina are a young couple with two small children, Jason (age four) and Claudia (age two). Trina is an account executive for a brokerage firm while Antonio has taken a couple years off from his profession as a civil engineer to work on an MBA degree. Right now Antonio and Trina's budget is very tight, as they are accustomed to living on two incomes, but Trina's employer has just circulated employer benefit information, so Antonio and Trina believe this is a good time to evaluate their life insurance needs. They have listed the financial information they believe is relevant.

-Antonio and Trina decide to purchase a $300,000 policy on Trina and a $250,000 policy on Antonio.How much would these policies cost if they were $0.92 per $1,000 of coverage for Tina and $0.98 per $1,000 for Antonio?

Question

Antonio and Trina are a young couple with two small children, Jason (age four) and Claudia (age two). Trina is an account executive for a brokerage firm while Antonio has taken a couple years off from his profession as a civil engineer to work on an MBA degree. Right now Antonio and Trina's budget is very tight, as they are accustomed to living on two incomes, but Trina's employer has just circulated employer benefit information, so Antonio and Trina believe this is a good time to evaluate their life insurance needs. They have listed the financial information they believe is relevant.
 
-Antonio and Trina decide to purchase a $300,000 policy on Trina and a $250,000 policy on Antonio.How much would these policies cost if they were $0.92 per $1,000 of coverage for Tina and $0.98 per $1,000 for Antonio?

Quizplus · Accepted Answer

To calculate the cost of Trina's policy:

$0.92 per $1,000 of coverage x $300,000 = $276

To calculate the cost of Antonio's policy:

$0.98 per $1,000 of coverage x $250,000 = $245

Adding together the costs of both policies:

$276 + $245 = $521

Therefore, the best choice is (C): $521.

Antonio and Trina Are a Young Couple with Two Small