OT- Anyone good with consumer math?

#1

I’m taking a consumer math course and I’m having trouble in it.

I’m currently learning about how life insurance policies work. The different yearly rates, annual premiums, ect.

My teacher didn’t explain it very well, and neither does my book.

I’ll try to get an example of a problem soon.

#2

Don’t know if this will help, but…

http://www.moneyinstructor.com/insurancelessons.asp
http://www.321know.com/mny.htm

#3

My younger cousin is in consumer math, and we use this site to help her out.

http://math.com

Good Luck!

#4

If you call me in the morning, my DH shoul dbe able to help!

#5

i’m taking geometry right now, but maybe i can still help u out :shrug:

i’d have to take a look at one of the problems to know if i can handle it though

#6

I don’t know if it works the same in the US and in Sweden but my mum works as an insurance salesman if you pm me your questions I could ask her if you like :slight_smile:

#7

weird. I didn’t learn about that stuff until I was in my 3rd or 4th year of university.

#8

I reread the lesson, and they’re not very descriptive. This is one of the questions I’m having trouble with:

Veronica cancelled her $65,000 straight life insurance policy after 15 years and she received $175 in cash value per $1,000 in insurance. She paid $12.68 per $1,000 in annual premiums. What was the net cost of her insurance for the 15-year period?

They did not tell us how to do this. :wall: But, I can answer this question:

Bill has a $75,000 straight life insurance policy. It costs $5.32 per $1,000 each year. What is Bills annuals premium?

Which, all you have to do is:

75,000/1000= 75*5.32= $399 is his annual premium.

I might just move on from this. :pout:

#9

you just need to take it a few steps further than the problem you already solved.

calculate the annual premium (X), which is X= $12.68 * 65, or X = $824.20.

then it’s asking how much it cost over the 15 years she paid in (Y). so Y = X *15.
Y = $824.20 * 15.
Y = $12363

next, you need to figure out how much she got back - gross amount (Z).
so Z = $175 *65.
Z = $11375

the net amount she paid (difference in the amount she paid and the amount she got back) would then be Y - Z.
$12363 - 11375
$988 net cost

hope that helps!
betsy

#10

Betsy that helped me out so much! Thank you!!! :muah:

#11

you’re welcome!