Question
A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old female for $200. According to the National Vital Statistics Report,
A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old female for $200. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. What is the expected cost of the insurance policy to the 20-year-old female buyer?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cambridge IGCSE And O Level Additional Mathematics
Authors: Val Hanrahan, Jeanette Powell
1st Edition
1510421645, 978-1510421646
