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21) An insurance company plans to sell a $250,000 one-year term life insurance policy to a 60-year-old female. Of 1.5 million females having similar risk factors, the company estimates that 7500 of them will die in the next year. What Is the premium that the insurance company should charge if it would like to make a profit of $175 on each policy? A) $1200 per policy B) $1250 per policy C) $140 per policy D) $1425 per policy E) $1390 per policy

21) An insurance company plans to sell a $250,000 one-year term life insurance policy to a 60-year-old female. Of 1.5 million females having similar risk factors, the company estimates that 7500 of them will die in the next year. What Is the premium that the insurance company should charge if it would like to make a profit of $175 on each policy? A) $1200 per policy B) $1250 per policy C) $140 per policy D) $1425 per policy E) $1390 per policy

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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An insurance company 

21) An insurance company płans to sell a $250,000 one-year term life insurance policy to a 60-year-old female. Of 1.5 million females having similar risk factors, the company estimates that 7500 of them will die in the next year. What Is the premium that the insurance company should charge if it would like to make a profit of $175 on each policy? A) $1200 per policy B) $1250 per policy C) $140 per policy D) $1425 per policy E) $1390 per policy
Transcribed Image Text:21) An insurance company płans to sell a $250,000 one-year term life insurance policy to a 60-year-old female. Of 1.5 million females having similar risk factors, the company estimates that 7500 of them will die in the next year. What Is the premium that the insurance company should charge if it would like to make a profit of $175 on each policy? A) $1200 per policy B) $1250 per policy C) $140 per policy D) $1425 per policy E) $1390 per policy
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