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Jim is a 60-year-old Anglo male in reasonably good health. He wants to take out a $50,000 term (i., straight death benefit) life insurance policy...
What is the probability that Jim will die in his 60th year? (Enter a number. Enter your answer to five decimal places.)
Using this probability and the $50,000 death benefit, what is the expected cost to Big Rock Insurance (in dollars)? (Enter a number. Round your answer to two decimal places.)
$
(b)What is the expected cost to Big Rock Insurance for years 61, 62, 63, and 64 (in dollars)? (For each answer, enter a number. Round your answers to two decimal places.)
year 61 $
year 62 $
year 63 $
year 64 $
What would be the total expected cost to Big Rock Insurance over the years 60 through 64 (in dollars)? (Enter a number. Round your answer to two decimal places.)
$
(c)If Big Rock Insurance wants to make a profit of $700 above the expected total cost paid out for Jim's death, how much should it charge for the policy (in dollars)? (Enter a number. Round your answer to two decimal places.)
$
(d)If Big Rock Insurance Company charges $5000 for the policy, how much profit does the company expect to make (in dollars)? (Enter a number. Round your answer to two decimal places.)
can anyone help break this down?
