Question: A 4 0 - year - old man in the U . S . has a 0 . 2 4 % risk of dying during

A 40-year-old man in the U.S. has a 0.24% risk of dying during the next year . An insurance company charges $290 per year for a life-insurance policy that pays a $100,000 death benefit. What is the expected value for the person buying the insurance? Round your answer to the nearest dollar.
Expected Value: $
for the year

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Find all complex zeros of each polynomial function. Give exact values. List multiple zeros as necessary. (x) = x 6 - x 5 - 26x 4 + 44x 3 + 91x 2 - 139x + 30

Q:

Need help filling the excel sheets (Exhibit 1, Exhibit 2, Cash flows, and Pro forma. ... CLARKSON LUMBER After rapid growth in its business during recent years, Clarkson Lumber Co. (CLC) anticipated...

Q:

The Scenario You are a financial planner who is investigating the options for a 55 year old man who wishes to have enough money to retire by the time he is 70. This man is very lucky. He has just won...

Q:

A 38 year old man in the United States has a 0.223% risk of dying during the next year. An insurance company charges a premium of $319 for a life insurance policy that pays a $200,137 death benefit....

Q:

A 34 year old man in the United States has a 0.169% risk of dying during the next year. An insurance company charges a premium of $301 for a life insurance policy that pays a $142,352 death benefit....

Q:

Its a nursing assignment based upon the communication skill of the nurses will respond to the situation and to the circumstances. You need to answer in the blank spaces Aim: Knowledge Evidence: The...

Q:

A 40 -year old man in the U.S. has a 0.244% risk of dying during the next year. An insurance company charges $290 per year for a life-insurance policy that pays a $100,000 death benefit. What is the...

Q:

You are a financial planner who is investigating the options for a 50 year old man who wishes to have enough money to retire by the time he is 65. This man is very lucky. He has just won the lottery...

Q:

The Scenario You are a financial planner who is investigating the options for a 50 year old man who wishes to have enough money to retire by the time he is 65. This man is very lucky. He has just won...

Q:

Help me answer all of the following activities and please do follow the page numberings thank you in advance Activity 3. Direction: Read and analyze the situation below. Answer the questions as...

Q:

A 40 year old man in the U.S has a 0.242% risk of dying the next year. An insurance company charges $290 per year for a life insurance policy pays a 100,000 death benefit. What is the expected value...

Q:

What is a balanced scorecard? What value does it offer entrepreneurs who are evaluating the success of their current strategies?

Q:

If fixed manufacturing overhead costs are released from inventory under absorption costing, what does this tell you about the level of production in relation to the level of sales?

Q:

If the rate of inflation is 4 . 7 3 % 4 . 7 3 % , what nominal interest rate is necessary for you to earn a 3 . 7 4 % 3 . 7 4 % real interest rate on your investment? ( Note : Be careful not to round...

Q:

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

Q:

10-8 The mobile platform may not make desktop PCs obsolete, but corporations will have to change their business models to adjust to this shift. Do you agree? Why or why not?

Q:

10-12 Pick one e-commerce company on the Internetfor example, Ashford, Buy.com, Yahoo, or Priceline. Study the Web pages that describe the company and explain its purpose and structure. Use the Web...

Q:

4. What role does Orbitz for Business play in the companys business strategy? When it comes to mobile apps and gauging their impact on consumers and business, the online travel industry and its...