A 28-year-old person pays $417 for a one-year life insurance policy with coverage of $114,498. If the

Fantastic news! We've Found the answer you've been seeking!

Question:

A 28-year-old person pays $417 for a one-year life insurance policy with coverage of $114,498. If the probability that the individual will live through the year is 0.9994, what is the expected value ?

Related Book For answer-question

Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

See More Books

Posted Date: Mar 09, 2024 10:25 AM

See More Questions

1. Hannah is applying for a life policy on her girlfriend Sarahs life. The policy is $500,000 and carries a large premium. Hannah is the main earner, so she is concerned about not being able to pay...
By investing in a particular stock, a businessman can make a profit in 1 year of P200,000 with probability of 0.4 or take a loss of P50,000 with probability of 0.60. What is the businessman's...
What is the difference between degree of saturation and moisture content is soil mechanics?
Why does the following code fragment not have the same effect as the code fragment in the previous question? x.next t.next = t; = x.next;
Hans Hoogervorst, Chair of the IASB, delivered a speech at the Korean Accounting Review International Symposium in Seoul, Korea, on March 31, 2015, entitled "Mind the Gap (Between non-GAAP and...
A meat baster consists of a squeeze bulb attached to a plastic tube. When the bulb is squeezed and released, with the open end of the tube under the surface of the basting sauce, the sauce rises in...
Continuing to focus on evidence associated with the act, concealment, and conversion, use the evidentiary material to continue the examination. In addition, the examiner also starts to think of terms...
Acme Manufacturing makes a variety of household appliances at a single manufacturing facility. The expected demand for one of these appliances during the next four months is shown in the following...
= 1, 2, 3,.... Problem 3.32. Suppose (xi) 1 C R and xi xi+1 for all i Show that there is an x* = (-, 0] such that x converges to x*. That is {x} x*, though perhaps x* .
7/1 owner put in 50g into company 8/1 company signed 10 year lease for space beginning 9/1. Rent 5g/mo. At signing company paid the first 6 months of rent + a 2 month security deposit. 10/1 Company...
During 20X6, W sold the interest she had held for five years in the WX Partnership for $15,000 cash. The buyer also assumed W's $2,000 share of the partnership liabilities. W's tax basis in the...
On a MS Project file, I've already done the first step of the assignment. Now I have to do the other part. It's asking me: Assume that roughly 50% of the project duration has now passed. Change the...
Taxpayer purchased a house in 2022 for $483,058. Taxpayer lived in the house as their principal residence until January 2023, when Taxpayer sold the house for $1,474,631. Taxpayer has never been...
Please i need your kind support in writing the Draft of The Final Report for any executive leadership issues like poor decision-making, or communication gaps to a lack of vision and direction .The...
On June 30, 2021, the stock of Venice Ltd. was trading at $54.50 per share. The following information regarding the company's quarterly dividends is also available: Dividends paid per share on:...
Is Foreign Aid and assistance crucial for a developing country? Support your answer with 10 examples in context of Pakistan as what advantages / disadvantages have been brought by financial aid?
What are the principal alloying elements in SAE 4340 steel?
Describe the relationship between conglomerate mergers and portfolio theory. What is the desired result of merging two unrelated businesses? Has the empirical evidence proven corporate...
Wilkes, Inc. must invest in a pollution-control program in order to meet federal regulations to stay in business. There are two programs available to Wilkes: an all-at-once program that will be...
One month ago, the Mexican peso (Ps)U.S. dollar exchange rate was Ps9.0395/$ ($0.1106/Ps). This month, the exchange rate is Ps9.4805/$ ($0.1055/Ps). State which currency appreciated and which...
A child receives $$100$,000 as a gift, which is deposited in a bank account earning 6 percent compounded semiannually. If $$5$,000 is withdrawn at the end of each half year, how long will the...
The plan was to leave $5,000 on deposit in a savings account for 15 years at 6.5 percent interest compounded annually. It became necessary to withdraw $1,500 at the end of the fifth year. How much...
A deposit of $3,000 is made in a savings account that pays 7.5 percent interest compounded annually. How much money will be available to the depositor at the end of 16 years? a. $8,877 b. $10,258 c....

A 28-year-old person pays $417 for a one-year life insurance policy with coverage of $114,498. If the

Question:

Expert Answer:

To calculate the expected value multiply the coverage amount by the probability ... View the full answer

Introduction to Corporate Finance What Companies Do

Students also viewed these statistics questions