Calculate the life insurance gross premium for an insurance company, XYZ Life, under the following assumptions. Please round your answer to the nearest dollar. 1-year term insurance for a 35-year-old female • The death benefit is $10,00O • The probability of death within one year given a female is 35 years old (q30) is 0.015 • The interest rate is 1.5% • All deaths occur uniformly, hence for simplicity, price the product assuming all deaths happen at the middle of the year XYZ Life is looking for a 25% loading based on the pure premium (i.e. PV of expected loss) (Hint: When loading Ap, expressed as a percentage, is based on pure premium, Gross premium = Pure premium x [1 + Ap]) %3D Choose the correct answer from below. $166 $171 $149 $155 $186

Calculate the life insurance gross premium for an insurance company, XYZ Life, under the following assumptions. Please round your answer to the nearest dollar. 1-year term insurance for a 35-year-old female • The death benefit is $10,00O • The probability of death within one year given a female is 35 years old (q30) is 0.015 • The interest rate is 1.5% • All deaths occur uniformly, hence for simplicity, price the product assuming all deaths happen at the middle of the year XYZ Life is looking for a 25% loading based on the pure premium (i.e. PV of expected loss) (Hint: When loading Ap, expressed as a percentage, is based on pure premium, Gross premium = Pure premium x [1 + Ap]) %3D Choose the correct answer from below. $166 $171 $149 $155 $186

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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.
The face value of the insurance policy is RO 400000 and the rate of insurance premium is RO 25 per thousand and the premium paid monthly. Which one of the following is premium paid monthly? a. RO 510 O b. RO 875 O c. None of the options O d. RO 260
Corona virus has created health uncertainties. You could buy an health insurance for yourself against potential Corona viral infection by paying $ 24 every year or, you may buy a lifetime insurance for a onetime payment of $ 400 today. Using a discount rate of 5%, how many years does it take to make the lifetime subscription the better option compared to yearly payments?
Suppose in a given state's new insurance marketplace, with community rating and no restrictions on who can buy at the community rate, the risk pool (distribution of expected health costs) is as follows: 20% of eligible enrollees' expected health costs = $1,000 (per year) 50% of eligible enrollees' expected health costs = $2,000 10% of eligible enrollees' expected health costs = $3,000 20% of eligible enrollees' expected health costs = $6,000 What would the community premium rate for this risk pool be if we also assume 10% loading costs for the insurer to cover its admin costs.
You are to make monthly deposits of $825 into a retirement account that pays an APR of9.7 percent compounded monthly.If your first deposit will be made one month from now, how large will your retirementaccount be in 32 years? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)
We Pay Insurance Co. will pay you $1,250 each quarter for 30 years. You want to earn a minimum interest rate of .9'percent per quarter. What is the most you are willing to pay today for these payments?Multiple Choice answersA. $88.008.36B. $86,490.98 C. $91,043.14D. $90,621.63E. $269.992.65
URE ic Gail Trevino expects to receive a $580,000 cash benefit when she retires seven years from today. Ms. Trevino's employer has offered an early retirement incentive by agreeing to pay her $310,000 today if she agrees to retire immediately. Ms. Trevino desires to earn a rate of return of 10 percent. (PV of $1& and PVA of $1) Note: Use appropriate factor(s) from the tables provided. raw Required a. Calculate the present value of the $580,000 future cash benefit. Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Trevino accept her employer's offer? Note: Round your final answer to the nearest whole dollar value. Present value Should Ms. Trevino accept the offer?
1. A 40 year old man in the U.S has a 0.242% risk of dying during the next year. An insurance company charges $260 per year for a life-insurance policy that pays a $100,000 death benefit. What is the expected value for the person buying the insurance? Round the answer to the nearest dollar.
Find the expected net profit of an insurance company on a life-insurance policy whose death benefit is $1,000,000 if the annual premium for the policy is $2000 and the chance of the customer dying within the next year is 0.002. Interpret. (show work)
The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. A sales associate for the company told you the policy costs $525,000. At what interest rate would this be a fair deal? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal? Select one: O a. 4758.17 Ob. 4321.71 Oc. 466508.69 Od. None of the options O e. 3651.77

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