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.
A) $1.56
B) $2.45
C) $7.18
D) $952.81
Answer: A
You might also like to view...
MIB stands for ________
A) Moton Information Balancing B) Message Information Balancing C) Management Information Base D) Messaging Internet Blocks
Consider the following statement: "Consumers can walk into a store, see a product they like, then type the model number into an app that compares the price with that of other retailers, find the product cheaper, and order it immediately via the phone from a competitor." There are seven outside forces that can influence the success of marketing programs. Which one does the above statement describe?
A) global forces B) economic forces C) legal and regulatory forces D) competitive forces E) technological forces