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Dave's Family Restaurant is paying 100% of the cost oflife insurance premiums for his 50 regular employees.Assume: It is a policy that pays a benefit
Dave's Family Restaurant is paying 100% of the cost oflife insurance premiums for his 50 regular employees.Assume:
It is a policy that pays a benefit of $150,000.00 to the family of any employee who dies; and
The actuaries assume 1 of the employees might die each 8 years; and
To cover its costs of doing business AND make a small profit the insurance company will charge 12% MORE than the basic cost of providing the benefit.
Calculate theMONTHLYcost of thePREMIUMSpaid by Dave.SHOW YOUR CALCULATIONS
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