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Life Insurance A 35-year-old woman purchases a $100,000
Chapter 5, Problem 18E(choose chapter or problem)
A 35-year-old woman purchases a $100,000 term life insurance policy for an annual payment of $360. Based on a period life table for the U.S. government, the probability that she will survive the year is 0.999057. Find the expected value of the policy for the insurance company.
Questions & Answers
QUESTION:
A 35-year-old woman purchases a $100,000 term life insurance policy for an annual payment of $360. Based on a period life table for the U.S. government, the probability that she will survive the year is 0.999057. Find the expected value of the policy for the insurance company.
ANSWER:Step 1 of 2
Given, A 35-year-old woman purchases a term life insurance policy = $100,000.
The annual payment = $360. And
The probability that she will survive the year = 0.999057.
Here we need to find the expected value of the policy for the insurance company.