3. Use the following Table to calculate the minimum premium an insurance company should charge for a $100,000 two-year term life insurance policy issued to a man age 40. Assume that the premium is paid at the beginning of each year and that the interest rate is 4%. Age Female Probability of Death within 1 Year Survival Probability 40 0.002092 0.95908 41 0.002240 0.95708 42 0.002418 0.95493

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Question
D3
3. Use the following Table to calculate the minimum premium an insurance company should charge for
a $100,000 two-year term life insurance policy issued to a man age 40. Assume that the premium is paid
at the beginning of each year and that the interest rate is 4%.
Age
Female
Probability of Death within 1 Year
Survival Probability
40
0.002092
0.95908
41
0.002240
0.95708
42 0.002418
0.95493
Transcribed Image Text:3. Use the following Table to calculate the minimum premium an insurance company should charge for a $100,000 two-year term life insurance policy issued to a man age 40. Assume that the premium is paid at the beginning of each year and that the interest rate is 4%. Age Female Probability of Death within 1 Year Survival Probability 40 0.002092 0.95908 41 0.002240 0.95708 42 0.002418 0.95493
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