According the 2001 CSO mortality table, the yearly probability of dying for a 40 year-old man is L00165. The present value of $1 one year from today, assuming a 5.5 percent interest rate, is 9479, What is the net sinale premium per $1.000

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
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According the 2001 CSO mortality table, the yearly
probability of dying for a 40 year-old man is
.00165. The present value of $1 one year from
today, assuming a 5.5 percent interest rate, is
.9479. What is the net single premium per $1,000
for a one-year term insurance policy sold to a man
at age 40 assuming a 5.5 percent interest rate?
Assume the premium is paid at the start of the year
and the death benefit is paid at the end of the year.
Transcribed Image Text:According the 2001 CSO mortality table, the yearly probability of dying for a 40 year-old man is .00165. The present value of $1 one year from today, assuming a 5.5 percent interest rate, is .9479. What is the net single premium per $1,000 for a one-year term insurance policy sold to a man at age 40 assuming a 5.5 percent interest rate? Assume the premium is paid at the start of the year and the death benefit is paid at the end of the year.
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