Mrs. Trudeau is interested in ensuring that her newborn son will have sufficient funds for higher education.
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Mrs. Trudeau is interested in ensuring that her newborn son will have sufficient funds for higher education. A certain plan will award a 5000 scholarship if her son survives to age 18 and enters a university. The cost for this plan at time of birth is 200. The probability that a newborn male survives to age 18 is .9821. If Mrs. Trudeau feels she can make 17% on her money, what probability must she assign to her son entering university for this scheme to be worthwhile?
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Theory Of Interest And Life Contingencies With Pension Applications A Problem Solving Approach
ISBN: 978-1566983334
3rd Edition
Authors: Asa Michael M. Parmenter, Ph.d.
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