A life insurance policy issued to a person aged 40 pays $200,000 at the end of the year of death. The single premium charged for this insurance is $15,000. If this premium can be invested at a rate of interest of 6% effective, use the Illustrative Life Table (From SOA) (in Blackboard: Course Content) to calculate the probability that the single premium is not adecuate.

Hint: Write down the present value random variable and set the equation relating the present value of the benefit and the single premium. Work the equation so that you end up with solving for K40. If this is not clear, come talk to me.