Use the following mortality table for the problems. Age # People Living # People
ID: 2686582 • Letter: U
Question
Use the following mortality table for the problems.
Age
# People Living
# People Dying
Prob. of Dying
Probability of Living
35
949,171
2,003
0.00211
1.0
36
947,168
2,121
0.00224
0.9979
37
945,047
2,268
0.00240
0.9957
38
942,779
2,432
0.00258
0.9933
39
940,346
2,623
0.00279
0.9907
Assuming a 5% interest rate and that you are currently 35 years old, how much would the one-time upfront payment be for a 5 year term policy with a $10,000 benefit?
Age
# People Living
# People Dying
Prob. of Dying
Probability of Living
35
949,171
2,003
0.00211
1.0
36
947,168
2,121
0.00224
0.9979
37
945,047
2,268
0.00240
0.9957
38
942,779
2,432
0.00258
0.9933
39
940,346
2,623
0.00279
0.9907
Explanation / Answer
$95.17