Long-Life Insurance has developed a linear model that it uses to determine the amount of term...

Long-Life Insurance has developed a linear model that it uses to determine the amount of term life insurance a family of four should have, based on the current age of the head of the household. The equation is:

y = 169 -0.40x

where

y = Insurance needed ($000)
x = Current age of head of household

b. Use the equation to determine the amount of term life insurance to recommend for a family of four if the head of the household is 59 years old. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Amount of term life insurance $ thousands

Expert Solution

Given that, amount of term life insurance a family of four should have is represented by the equation as

Y = 169 - 0.40X

where Y = Insurance Needed (000)

X = Current age of household's head

For an age of head of household = 59 Years

Insurance needed = 169 - (0.40 x 59) = 145.4

= $145,400

keosha answered 2 years ago

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