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Individuals belonging to a certain population have future lifetimes defined according to the following probability distribution function: FX(t)=1e(0.75t)2 A two-year term insurance pays 20000 at
Individuals belonging to a certain population have future lifetimes defined according to the following probability distribution function: FX(t)=1e(0.75t)2 A two-year term insurance pays 20000 at the end of year of death. If i=0.04, calculate the expected present value of this insurance. (Two year term insurance means that it will pay if the individual dies within two years, but will not pay anything otherwise)
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