+0

0
672
6
+1694

Sam is applying for a single year life insurance policy worth \$25,700.00. If the actuarial tables determine that he will survive the next year with probability 0.99, what is the expected value for the life insurance if the premium is \$362.00?

Jun 23, 2019

#1
+2854
+3

I am not sure if this is right, I just searched up how to do this kind of problem.

: Find the expected value of life insurance if the premium is \$362.00

Do (362) * (0.99) - (25700) * (0.01)

(362)*(0.99)-(25700)*(0.01) = 101.38

Jun 23, 2019
#2
+1694
+18

THANK YU CALCULATOR USER

tommarvoloriddle  Jun 23, 2019
#3
+23557
0

Maybe \$105?    I had to loOk this one up also....but the example I found may be incorrect...

362(.99) -(25700-362)(.01) = \$ 105

Jun 23, 2019
#4
+1694
+6

I honestly got -162.something, then retried and got 56... so I came here... And I was wrong both counts... Nobody on the internet agrees with me...

tommarvoloriddle  Jun 23, 2019
#5
+2854
+3

There must be a concrete way to do this...

I have never seen this type of problem before, it is quite strange.

CalculatorUser  Jun 24, 2019
#6
+1694
+5

same... I was helping an user at brainly.com, then the user popped a random question at me.... I was so confused so I posted here...

tommarvoloriddle  Jun 26, 2019