There is a 0.9986 probability that a randomly selected 32-year-old male lives through the year. A life insurance company charges $168 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $110,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 32-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? 16JFLOZ TPTUSROO The value corresponding to surviving the year is $ The value corresponding to not surviving the year is $ (Type integers or decimals. Do not round.) b. If the 32-year-old male purchases the policy, what is his expected value? The expected value is $ (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why? because the insurance company expects to make an average profit of $ nearest cent as needed.) on every 32-year-old male it insures for 1 year. Yes, No,

There is a 0.9986 probability that a randomly selected 32-year-old male lives through the year. A life insurance company charges $168 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $110,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 32-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? 16JFLOZ TPTUSROO The value corresponding to surviving the year is $ The value corresponding to not surviving the year is $ (Type integers or decimals. Do not round.) b. If the 32-year-old male purchases the policy, what is his expected value? The expected value is $ (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why? because the insurance company expects to make an average profit of $ nearest cent as needed.) on every 32-year-old male it insures for 1 year. Yes, No,

Holt Mcdougal Larson Pre-algebra: Student Edition 2012

1st Edition

ISBN:9780547587776

Author:HOLT MCDOUGAL

Publisher:HOLT MCDOUGAL

Chapter7: Percents

Section7.7: Simple And Compound Interest

Problem 1E

See similar textbooks

Similar questions

A bond pays a return (simple interest) of 5% and has a default rate of 3%. This bond is purchased for $1000.00. What is the expected rate of return for the purchaser?
10 The observed insurance policy deviates from the predicted policy, on average, by _______ ($1,000) a 44.465 b 49.406 c 54.895 d 60.994
Find the simple interest and tge maturity value in each of the following cues.
Home insurance policies may cover jewelry for $1,000 and silverware for $2,500 unless these items are covered with additional insurance. If $3,300 worth of jewelry and $2,100 worth of silverware were stolen from a family, and the policy has a deductible of $1,000, what amount of the claim would not be covered by insurance?
The sales commission of a pharmaceutical distribution company is structured such that its part-time sales representatives receive commissions of: 4.00% on the first $10,000 they sell, 6.00% on the next $10,000, 11.00% thereafter on all sales they make. Daniel, a new sales representative, made sales of $2,500 in his first month, $16,500 in his second month, and $37,000 in his third month. a. What was the commission in the first month? Round to the nearest cent b. What was the commission in the second month? Round to the nearest cent c. What was the commission in the third month? Round to the nearest cent d. What single commission rate would represent his total earnings throughout the first 3 months? Round to two decimal places
Which of the following bond has the highest interest rate risk and why? Show work if needed. A 5 year treasury bond with 10% coupon rate, a 5 year treasury bond with zero coupon rate, a 10 year treasury bond with 10% coupon rate, or a 10 year treasury bond with zero coupon rate?
An investor is to receive a 15-year $8,000 annuity, the first payment to be received today. At an 11% discount rate, this annuity's worth today is closest to: a. $55,855 b. $57,527 c. $63,855 d. $120,000
1. What data items do you need to be able to find duplicate payments? 2. Would the date of the duplicate payment usually be the same or different?
A machine cost RO 50,000 in 2006. Its estimated salvage value is RO 3800 and its expected life is seven years. The accumulated depreciation for 2007 according to Sum-of-the-years-digits method of depreciation is ______________. a. RO 29,650 b. RO 28,550 c. RO 20,300 d. RO 21,450
In a one-step binomial pricing model a forward contract and a futures contract are written on the same asset and with the same time to maturity. Which of the following is true? a. The forward price and the future price cannot be equal. b. We need to know the interest rates in order to determine whether or not the forward price and the future price are equal. c. The forward price and the future price will be equal provided both contracts are margined. d. The forward price and the future price will be equal.
2. A donor gives 5,000,000 to a university and specifies that it is to be used to give annual scholarships for the nest 20 years. If the university can eard 4% interest, how much they can give in scholarship each year?
You observe on your futures chart that prices have fallen and closed below the 50-day moving average. Based on this indicator, you would be looking to enter a short position for this market. A. True B. False