4. Consider a 20-year term insurance issued to a select life aged 40 by a single premium, with sum insured $500,000 payable immediately on death. Assume mortality follows the Standard Select Life Table, with UDD between integer ages, and assume an interest rate of 5% per year. Calculate the net single premium.
4. Consider a 20-year term insurance issued to a select life aged 40 by a single premium, with sum insured $500,000 payable immediately on death. Assume mortality follows the Standard Select Life Table, with UDD between integer ages, and assume an interest rate of 5% per year. Calculate the net single premium.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter8: Insuring Your Life
Section: Chapter Questions
Problem 6FPE
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![4. Consider a 20-year term insurance issued to a select life aged 40 by a single premium, with
sum insured $500,000 payable immediately on death. Assume mortality follows the Standard
Select Life Table, with UDD between integer ages, and assume an interest rate of 5% per year.
Calculate the net single premium.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3cebe8f-2e50-46d9-92f0-719da6b18a32%2Fd42904df-4644-4371-8b4d-02090a1eccfd%2Fx6rsaj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. Consider a 20-year term insurance issued to a select life aged 40 by a single premium, with
sum insured $500,000 payable immediately on death. Assume mortality follows the Standard
Select Life Table, with UDD between integer ages, and assume an interest rate of 5% per year.
Calculate the net single premium.
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