Using life insurance tables, a retired couple determines that the probability of living 5 more years is

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Using life insurance tables, a retired couple determines that the probability of living 5 more years is .9 for the man and .95 for the woman. They decide to take out a life insurance policy that will pay $10,000 if either one dies during the next 5 years and $15,000 if both die during that time. How much should they be willing to pay for this policy? (Assume that their life spans are independent events.)
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Finite Mathematics and Its Applications

ISBN: 978-0134768632

12th edition

Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair

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