Question
Jimbo wishes to purchase a special whole life insurance policy that pays $10,000 at the end of the year of death but only if
Jimbo wishes to purchase a special whole life insurance policy that pays $10,000 at the end of the year of death but only if death occurs while his age is an even number. Jimbo is currently 41 years old and his mortality follows: &P41 = 0.95k k20 Calculate the actuarial present value of this policy assuming an annual effective interest rate of 6%. a) 2150 b) 2330 c) 2790 d) 2520 e) 2870
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