Answer:
(c) 27.81
Step-by-step explanation:
We have been given a table that represents the amount of annual premium of ABC term life insurance company.
Since Eddie is 37 year old male and he bought a 20 year life insurance life policy, so the annual premium charged per $1000 of coverage will be $10.33.
Let us find the total annual premium by multiplying $10.33 by 70 as he bought a $70,000 policy.
[tex]\text{The annual premium paid by Eddie}=\$10.33\times 70[/tex]
[tex]\text{The annual premium paid by Eddie}=\$323.18[/tex]
Since biweekly means 26 times per year, so we will divide the annual premium by 26 to find the amount deducted from each of his paychecks.
[tex]\text{The amount deducted from each of Eddie's paychecks for life insurance}=\frac{\$323.18}{26}[/tex]
[tex]\text{The amount deducted from each of Eddie's paychecks for life insurance}=\$27.81461538\approx \$27.81[/tex]
Therefore, am amount of $27.81 is deducted from each of his paychecks for life insurance and option c is the correct choice.
