A man purchased a $22,500, 1-yr term-life insurance policy for $695. Assuming that the probability that...
A man purchased a $22,500, 1-yr term-life insurance policy for $695. Assuming that the probability that he will live for another year is 0.995, find the company's expected gain. (Round your answer to the nearest cent.) $
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A man purchased a $22,500, 1-yr term-life insurance policy for
$695. Assuming that the probability that...
A man wishes to purchase a life insurance policy that will pay the beneficiary $15,000 in...
A man wishes to purchase a life insurance policy that will pay the beneficiary $15,000 in the event that the man's death occurs during the next year. Using life insurance tables, he determines that the probability that he will live another year is 0.97. What is the minimum amount that he can expect to pay for his premium? Hint: The minimum premium occurs when the insurance company's expected profit is zero.
A 28-year-old man pays $100 for a one-year life insurance policy with coverage of $200,000. If...
A 28-year-old man pays $100 for a one-year life insurance policy with coverage of $200,000. If the probability that he will live through the year is 0.9997, what is the expected value for the insurance policy?
A 28-year-old man pays $223 for a one-year life insurance policy with coverage of $60,000. If...
A 28-year-old man pays $223 for a one-year life insurance policy with coverage of $60,000. If the probability that he will live through the year is 0.9993, what is the expected value for the insurance policy?
28- year- old man pays $158 for one year life insurance policy with coverage of $110,000....
28- year- old man pays $158 for one year life insurance policy with coverage of $110,000. If the probability he will live through the year is policy? 0.9994, what is the expected value for the insurance
A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year old male...
A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year old male for $350. The probability this person survives the year is 0.98734. Compute the expected value of this policy to the insurance company to the nearest 0.01.
Life Insurance: Your company sells life insurance. You charge a 55 year old man $70 for...
Life Insurance: Your company sells life insurance. You charge a 55 year old man $70 for a one year, $100,000 policy. If he dies over the course of the next year you pay out $100,000. If he lives, you keep the $70. Based on historical data (relative frequency approximation) the average 55 year old man has a 0.9998 probability of living another year. (a) What is your expected profit on this policy? $ (b) What is an accurate interpretation of...
1.Just before his first attempt at bungee jumping, John decides to buy a life insurance policy....
1.Just before his first attempt at bungee jumping, John decides to buy a life insurance policy. His annual income at age 30 is $35,000, so he figures he should get enough insurance to provide his wife and new baby with that amount each year for the next 35 years. If the long-term interest rate is 6.5%, what is the present value of John's future annual earnings? a. (Round your answer to the nearest cent.) $ ____________ b. Rounding up to...
Question 8 (10 points) A term life insurance policy will pay a beneficiary a certain sum...
Question 8 (10 points) A term life insurance policy will pay a beneficiary a certain sum of money upon the death of the policy holder. These policies have premiums that must be paid annually. Suppose a life insurance company sells a $230,000 one year term life insurance policy to a 49-year-old female for $527. According to the National Vital Statistics Report, Vol. 47, No. 28, the probability the female will survive the year is 0.99791. Compute the expected value of...
Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 19-year-old...
Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 19-year-old female for $220. The probability that the female survives the year is 0.999516. Compute and interpret the expected value of this policy to the insurance company. The expected value is Round to two decimal places as needed.)
A 30-year-old woman purchases a $200,000 term life insurance policy for an annual payment of $400....
A 30-year-old woman purchases a $200,000 term life insurance policy for an annual payment of $400. Based on a period life table for the U.S. government, the probability that she will survive the year is 0.999051. Find the expected value of the policy for the insurance company. Round to two decimal places for currency problems The expected value of the policy for the insurance company is S
28- year- old man pays $158 for one year life insurance policy with coverage of $110,000. If the probability he will live through the year is policy? 0.9994, what is the expected value for the insurance
Question 8 (10 points) A term life insurance policy will pay a beneficiary a certain sum of money upon the death of the policy holder. These policies have premiums that must be paid annually. Suppose a life insurance company sells a $230,000 one year term life insurance policy to a 49-year-old female for $527. According to the National Vital Statistics Report, Vol. 47, No. 28, the probability the female will survive the year is 0.99791. Compute the expected value of...
Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 19-year-old female for $220. The probability that the female survives the year is 0.999516. Compute and interpret the expected value of this policy to the insurance company. The expected value is Round to two decimal places as needed.)
A 30-year-old woman purchases a $200,000 term life insurance policy for an annual payment of $400. Based on a period life table for the U.S. government, the probability that she will survive the year is 0.999051. Find the expected value of the policy for the insurance company. Round to two decimal places for currency problems The expected value of the policy for the insurance company is S
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