A 5 year endowment assurance contract provides a death benefit of €15,000 at the end of the policyyear of death within the 5 year term or else a maturity benefit of €20,00 at the end of the 5 yearterm. The contract is purchased by level premiums payable annually in advance for as long as thecontract remains in force. The 1 year death probability is qx=0.04 for t-0,1,2,3,4.Calculate the annual net premium.

The chance of occurrence of observation in the sample or event with equal likelihood to all the…

Answered: A 5 year endowment assurance contract…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Please do the following questions with full handwritten working out
There is a 0.9991 probability that a randomly selected 33-year-old male lives through the year. A life insurance company charges $166 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 33-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value corresponding to surviving the year is $ The value corresponding to not surviving the year is $ (Type integers or decimals. Do not round.) b. If the 33-year-old male purchases the policy, what is his expected value? The expected value is $ (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why? because the insurance company expects to make an average profit of $ on every 33-year-old male it insures for 1 year. (Round to the nearest cent as needed.)
A 10-year annuity makes continuous payments. At time tt, the annuity pays at an annual rate of (30−3t)(30−3t). Time is measured in years. At an annual effective interest rate of 5%, calculate the present value of the annuity. A. 128.31 B. 140.18 C. 144.51 D. 156.00 E. 201.03
There is a 0.9986 probability that a randomly selected 27-year-old male lives through the year. A life insurance company charges $157 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $80,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 27-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value corresponding to surviving the year is $nothing. The value corresponding to not surviving the year is $nothing. (Type integers or decimals. Do not round.) b. If the 27-year-old male purchases the policy, what is his expected value? The expected value is $nothing. (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why? because the insurance company expects to make an average profit of $nothing on every 27-year-old male it…

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