Suppose that a life aged 30 arranged an insurance with the following parameters. If death occurs...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose that a life aged 30 arranged an insurance with the following parameters. If death occurs in the first 20 years, 10,000 is paid. Otherwise, 20,000 is paid. Moreover, it was arranged with the insurance company that a premium refund will be paid in the case of death during the first 5 years. This refund will be 25% of the net single premium. Assume that it holds: la 100- x, 0≤x≤ 100 and i = 5%. Calculate the net single premium of this insurance. Suppose that a life aged 30 arranged an insurance with the following parameters. If death occurs in the first 20 years, 10,000 is paid. Otherwise, 20,000 is paid. Moreover, it was arranged with the insurance company that a premium refund will be paid in the case of death during the first 5 years. This refund will be 25% of the net single premium. Assume that it holds: la 100- x, 0≤x≤ 100 and i = 5%. Calculate the net single premium of this insurance.
Expert Answer:
Answer rating: 100% (QA)
Insured is aged 30 Probability of death during years 120 1 l30l100 1 70100 30 Pro... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Verify that (x, y) = tan 1 y/x is harmonic using both the rectangular and polar expressions for .
-
One end of a solid cylindrical copper rod 0.200 m long is maintained at a temperature of 20.00 K The other end is blackened and exposed to thermal radiation from surrounding walls at 500.0 K the...
-
Suppose, you are a CEO of a company and you just made a big investment in a new production facility. Your Chief Risk Officer provides you with the following information: Your liabilities consist of...
-
Plaintiffs W. O. and J. C. Lucy had wanted to purchase Ferguson Farm from the Zehmers for at least eight years. One night, Lucy stopped by the establishment the Zehmers operated and said that he bet...
-
Lansing Companys 2013 income statement and selected balance sheet data at December 31, 2012 and 2013 follow. Required Prepare the cash flows from operating activities section only of the companys...
-
A psychrometer has a dry-bulb reading of 90F and a wet-bulb reading of 60F. Find each of the following measurements. (Use the data in this table as necessary.) (a) relative humidity (Enter your...
-
How might you combine social entrepreneurship with traditional options for going global?
-
The graph of the function fr) = 3*+2_1 is which of the following?
-
Discuss naive empiricism? *Also, do you think this method is effective to reach any logical conclusion in order to examine common law theories or principles.
-
Describe the role of both the judge and the jury in criminal trials. Explain why the jury is both substantively and symbolically important. Please provide as much details as possible.?
-
Could you elucidate the concept of higher-order functions and delineate how they facilitate abstraction and enable functional programming paradigms?
-
Why are your miranda rights important in a situation when you are being arrested? Review the newOERcint
-
Jordan Moore recently graduated from the school of dentistry and has decided that he wants to go into private practice in his home town of Parma, Ohio. In order to establish the clinic, he...
-
The _______ has made it possible for other companies to eliminate intermediaries and sell directly to the end consumer. A. scm B. internet C. competition D. global sourcing
-
After Theorem 1.5 we note that multiplying a row by 0 is not allowed because that could change a solution set. Give an example of a system with solution set S0 where after multiplying a row by 0 the...
-
Tom has a successful business with $100,000 of income in 2012. He purchases one new asset in 2012, a new machine which is 7-year MACRS property and costs $25,000. If you are Tom's tax advisor, how...
-
During the 2012 tax year, Irma incurred the following expenses: Union dues..............................................................$275 Tax return preparation...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
Enter up a columnar purchases day book with columns for the various expenses for J. Still for the month from the following information on credit items. 2016 January f 1 Bought goods from H. Graham...
-
A Enter up a columnar purchases day book with columns for the various expenses for F. Graham for the month from the following information on credit items. 2016 June Bought goods from J. Syme 4 Bought...
-
Enter up the relevant accounts in the purchases and general ledgers from the columnar purchases day book you completed for Review Question 20.4A. Data From Review Question 20.4A 20.4A Enter up a...
Study smarter with the SolutionInn App