Able Johnson wants to buy a whole life policy with a face value of $250,000. He is 40 years old, and the premium fee for his age is $19.50 per $1,000 unit of face value. What is his annual premium?

OK, this written in numbers is



But, fractions can not divide.  So we need to multiply one by the reciprocal of the other.  The reciprocal of a fraction is itself flipped upside down.  For example, the reciprocal of 1/2 would be 2/1.  

So, we will multiply 3/2 by 4/1.  We know how to do this, it is simply 3/2*4=12/2=6.

So, the answer is n = 6.  That would be answer c, because 6 is between 5 and 7.