Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Age # People Living # People Dying Prob. of Dying Probability of Living 35 949,1

ID: 2686583 • Letter: A

Question


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


Using the mortality table again, what would an annual premium be for a 5-year term policy with a $10,000 benefit if the upfront payment is $101.29 and the interest rate is 6%? (use the probability of living statistics from the table)


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