Question: 2. Death for (x) is distributed such that the probability that an individual dies in the next 3 months is always the same regardless of

2. Death for (x) is distributed such that the probability that

2. Death for (x) is distributed such that the probability that an individual dies in the next 3 months is always the same regardless of their age. The probability that (x) will survive for 5 years is 35.8486%. What is the APV (the EPV) of the payout of a 2 year term life insurance policy on (x) if it pays $300,000 at the end of a quarter in which (x) dies? Use an annual interest rate of 6% compounded monthly (that's not a typo; I am giving you the monthly rate)

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