If the policy premium on a 30 year $500,000 term life policy for a 35 year old female is decreased to $361, what is the percent decrease in price? (round to the nearest whole percent) a) 6% b) 7% c) 8% d) 9%

The percentage decrease in price is 21.43

Step-by-step explanation:

Given as :

the policy amount fro 35 years = $500,000

The time period of policy is 35 years

The Amount decreased = $361

Let The percentage decrease = R %

Now, From compounded method

Amount after n years = initial amount ×

or, $361 =  $500,000 ×

Or, =

or, 0.000722 =

Or, =

or, 0.7857 =  

So, = 1- 0.7857 = 0.2143

So, Decrease rate of interest = 21.43

Hence The percentage decrease in price is 21.43 Answer