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%

Answer: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 yearsThe Amount decreased = $361Let The percentage decrease = R %Now, From compounded methodAmount after n years = initial amount × [tex](1-\frac{Rate}{100})^{n}[/tex]or, $361 =  $500,000 × [tex](1-\frac{Rate}{100})^{30}[/tex]Or, [tex]\frac{361}{500000}[/tex] = [tex](1-\frac{Rate}{100})^{30}[/tex]or, 0.000722 = [tex](1-\frac{Rate}{100})^{30}[/tex] Or, [tex]0.000722^{\frac{1}{30}}[/tex] = [tex]1-\frac{Rate}{100}[/tex]or, 0.7857 =  [tex]1-\frac{Rate}{100}[/tex]So, [tex]\frac{Rate}{100}[/tex] = 1- 0.7857 = 0.2143So, Decrease rate of interest = 21.43 Hence The percentage decrease in price is 21.43 Answer