Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 76

Tina Parker, a single mother, is 20 years old. She has called on you for an insurance consultation. Her objective is to purchase life insurance protection for the next 10 years while her children are growing up. Tina tells you that she can afford about $250 per year for insurance premiums. You have suggested either a 10-year term policy or a whole life policy.
a. Rounded to the nearest thousand, how much insurance coverage can Tina purchase under each policy Him: Divide her annual premium allowance by the rate per $1,000 for each policy.
b. If she should die in the next 10 years, how much more will her children receive under the term insurance
c. If she should live beyond the 10th year, what are her non forfeiture options with the whole life policy