You are given the following information about a person aged exactly x: 9x = 0.03, 9x+1 = 0.04, 9x+2 = 0.05 A Term Life Insurance contract with death benefit of 50,000 is set on this life, with a coverage period of n = 3 years. What is the Expected Present Value of the death benefit, if the annual effective interest rate is 8% ? [As usual, a benefit is paid at the end of the year of death, if death occurs within the coverage period.] Select one: O a. 5292.2 O b. 5088.1 O c. 6010.5 O d. 4704.4 e. 4900.2

You are given the following information about a person aged exactly x: 9x = 0.03, 9x+1 = 0.04, 9x+2 = 0.05 A Term Life Insurance contract with death benefit of 50,000 is set on this life, with a coverage period of n = 3 years. What is the Expected Present Value of the death benefit, if the annual effective interest rate is 8% ? [As usual, a benefit is paid at the end of the year of death, if death occurs within the coverage period.] Select one: O a. 5292.2 O b. 5088.1 O c. 6010.5 O d. 4704.4 e. 4900.2

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter8: Insuring Your Life

Section: Chapter Questions

Problem 6FPE

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