Miranda decided to buy a $50,000 term life insurance policy from Palmetto Insurance Company to cover her until she is 55. She is currently 50 years old and in good health. The probability of death in a given year is provided by the Social Security Actuarial Life Table. x=x= Age5051525354PP(Death at a Given Age)0.00320.00350.00380.00410.00441. Fill in the expected cost to Palmetto Insurance Company for each year Miranda has the policy.Age at Death5051525354Expected Cost$ Answer $ Answer $ Answer $ Answer $ Answer 2. The insurance company wants to make a profit of $500. How much would they need to charge for the policy? $

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life insurance policy from Palmetto Insurance Company to cover her until she is 55. She is currently 50 years old and in good health. The probability of death in a given year is provided

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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Question

Miranda decided to buy a $50,000 term life insurance policy from Palmetto Insurance Company to cover her until she is 55. She is currently 50 years old and in good health. The probability of death in a given year is provided by the Social Security Actuarial Life Table.

x=x= Age	50	51	52	53	54
PP(Death at a Given Age)	0.0032	0.0035	0.0038	0.0041	0.0044

1. Fill in the expected cost to Palmetto Insurance Company for each year Miranda has the policy.

Age at Death	50	51	52	53	54
Expected Cost	$ Answer	$ Answer	$ Answer	$ Answer	$ Answer

2. The insurance company wants to make a profit of $500. How much would they need to charge for the policy? $

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