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Suppose that Happily Newly Wed Insurance Company is launching a new product for newly wed couples. If a married couple signs today, they are
Suppose that Happily Newly Wed Insurance Company is launching a new product for newly wed couples. If a married couple signs today, they are required to put a down payment of $20,000 today and should at least one of them survives 50 years from now, they receive $1,000,000 at the exact 50-year period. Their joint CDF is assumed to follow the following distribution, with T representing the husband's remainder lifetime, currently aged x, and T3 representing the wife's remainder lifetime, currently aged y: Fr73(t,t) = (100) 0.5 (105_) 0.0 for 0 t 100 - x and 0 t 105 - y c) If a newly wed couple, both aged 30, are evaluating their financial options and are debating whether to go for this insurance product or put $20,000 into a risk-free investment account that earns continuously compounded interest, 8. Find 8 such that the account grows to $150,000 in a 50-year period?
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